New Delhi, May 7 (IANS) The main opposition Bharatiya Janata Party Monday voiced concern over India’s depleting foreign currency reserves, which have declined by $12.8 billion in recent years.
“Our foreign currency reserves have declined by $12.8 billion in recent years. We all know the situation of rupee compared to dollar and many economists are there who say that today our economic condition is almost what we had in 1991. We are dealing with a huge problem,” former Finance Minister Yashwant Sinha said.
“This is a very serious issue that once there is a draw down on your reserves then it is difficult to say where will we stop,” Sinha said, while participating in the discussion on the finance bill in the Lok Sabha.
In 1991, India had a major balance of payment crisis which triggered the economic reforms.
Sinha said: “Everything is happening…the data that we have given that $13 billion reserve has decreased means that RBI has spent the dollars in the market so that the value of rupee remains steady.”
Although India has accumulated around $300 billion of foreign currency reserves, what is worrying is the depreciation of of the rupee that has fallen 19 percent against the dollar over the past year.
Sinha also tried to address concern of foreign investors saying the India growth story was not over.
“I want to tell the foreigners the India growth story is not over. It will revive. India will become a powerful nation in the world there should be no doubt about that. There are temporary difficulties which we shall overcome.”
The opposition strongly believed in the future of India, he added.
