New Delhi, Sep 30 (UNI) Stating that Finance Minister P Chidambaram thinking that Indian economy was an 'insulated island' in the face of global meltdown was a 'misleading statement', the BJP today said there were areas of instability and overheating which could not be overlooked.
Senior BJP leader and former Finance Minister Jaswant Singh said although India's exposure to the US banking system appeared to be limited, he feared that there could more bad news in the offing in the next three months.
The economy was already showing clear signs of economic slowdown combined by high inflation, decline in industiral production, high capital costs and unbearable corruption in administration and non-availability of infrastructural support systems, he said, adding that a ''great crisis confronts India''.
Mr Singh said insurance sector and pension funds could be the next areas of crisis and the BJP was forewarning the UPA that it could not irresponsibly abandon national economic interests to its successors.
He said the artificially created real estate bubble was now collapsing and eroding the confidence of savings and investments cycles in India. Real estate prices had gone up by 300 to 1000 per cent in 50 metropolitan cities and the companies, industrialists and state governments and political leaders were entering the market to manipulate and exploit. Malls had multiplied across the country so also the Special Economic Zones to the detriment of national landscape, natural beauty and the farming commuity.
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