Bhubaneswar, Mar 15 (UNI) CPI(M) Polit Buro member Sitaram Yechury today urged Union Finance Minister P Chidambaram to take corrective measures before the Finance Bill was adopted in Parliament in view of recession in the US economy.
Talking to mediamen here Mr Yechury said President George Bush has admitted that US economy was undergoing a ''rough'' time. The unemployment was increasing and the value of US dollar was falling sharply, he added.
This might have an adverse impact globally and, particularly in India, since the rate of growth of manufacturing industry and export was declining rapidly.
''All the projections made in the Budget (2008-09) by the Finance Minister will become uncertain unless some corrective measures are taken immediately'', the CPI(M) Rajya Sabha member remarked.
Mr Yechury said the government must ensure stability of rupee as reduction of exports would ultimately lead to loss of lakhs of job in the country.
The textile industry had been already affected and the IT was going to be affected since the rupee has been appreciated nearly 13 per cent during the last one year against the profit margin of ten per cent in the export items, Mr Yechury said.
He also predicted of an adverse affect on the traditional items export following recession in the US economy leading to a huge loss of jobs in India.
''We demand by the time the Finance Bill is adopted in Parliament, the government must come up with some corrective measures to meet the situation'', he said.
India could not afford to be complacent as President Pratibha Patil while addressing the joint session of Parliament said the country had insulated itself to which ''we did not agree'', Mr Yechury pointed out.
'' We also disagree with the government that inflation is a demand driven adding that the inflation is taking place due to rise in prices of essential commodities due to speculation in the forward market'', he observed.
The CPI(M) leader said the global food market has gone up by 88 per cent during the last six months. It was high time that the government should initiate steps to remove all the essential commodities, food grains and agricultural products from the forward market instead of confining to wheat, pulses and rice, he added.
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