Manmohan Wants Revival of Economy with "Animal Spirit"

He said that in the short run, “we need to revive investor sentiment, both domestic and international”. “There are some issues we must address in the short run and some in the long run,” Singh said.

The discussions covered controlling fiscal and current account deficits in the wake of concerns shown by the global rating agencies on these counts. The fiscal deficit in 2011-12 was 5.76 per cent and current account deficit at four per cent are quite high for the economy. Singh has taken charge of the finance portfolio at a time when the economic growth has plunged to nine-year low of 5.3 per cent in the last quarter of 2011-12.

With stock market witnessing capital outflows and rupee depreciating over 25 per cent in a year, controlling inflation remains a big concern as well. “Millions of our countrymen look up to the government to throw open channels for their progress, prosperity and welfare,” the Prime Minister said at the meeting.