Speech to parliament that he promised yesterday

  • but says its “a matter of concern”
  • expects rupee decline to be positively reflected in exports in coming months
  • says India must reduce its appettite for gold and consumption of oil
  • rupee fall caused by large current account deficit and other domestic factors
  • govt will take all possible steps to keep c/a below $70 bln
  • not contemplating capital controls
  • govt will do more to improve economic fundamentals
  • will contain fiscal deficit at 4.8% in 2014
  • depreciation in rupee will put upward pressure on inflation
  • fundamentals of Indian economy remain strong
  • banks are well capitalized to pay for non-performing assets
  • there may be short term shocks to the economy which must be faced

That would appear to be all

Quite how he intends to curb gold and oil imports to improve c/a he doesn’t say

Perhaps our Indian readers can shed some light?