Can PM Fix the Economy? Fingers Crossed!

Bangalore: Taking over the finance ministry, Prime Minister Manmohan Singh told the Hindustan Times, “We cannot expect outside help on a scale that can see us through our difficulties.” He has asked for the reshuffling of the cabinet after the Finance Minister, Pranab Mukherjee went on to contest for the presidential poll.

Singh advised all the political parties to join hands with the government and help to restore the momentum of the growth. He spoke about the need for foreign direct and portfolio investment. He said, “The events of the last couple of days convince me more than ever before that there are no international solutions to the problems of a country of India's size and diversity.”

He insisted that there was no “stagflation” (it is an economic phenomenon of simultaneous high inflation and low growth) rather its jus a mere “slowdown”. Abheek Barua, Chief Economist at HDFC Bank, tells Reuters, “I'm glad he's talking about specifics rather than broad-brush issues. It's a move forward from what was happening earlier.”