India can't afford to be complacent to global meltdown: BJP

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New Delhi, Oct 10 (UNI) The BJP today cautioned the government not to live under the illusion that the Indian economy, beset with a host of domestic challenges, would remain untouched by the ongoing global meltdown.

While the global economy will have its own impact on India, the country cannot ignore the danger signals. The industrial production had come down to 1.3 per cent this year from 12.9 per cent in September 2007 while inflation was hovering around 12 per cent, BJP spokesman Prakash Javadekar said.

The global meltdown was bound to have an impact on the services sector in the coming months and the agricultural sector had not achieved over three per cent growth so far, he added.

The BJP wanted the Government to conduct a sector-wise reality check and the people who man the power levers should stop living in a make-believe world, he said. The Iceland economy should be an eye-opener for all, he added.

Mr Javadekar said the stock market index had shown that with the flight of every billion dollars of money from the market, the index figures dropped by 1000 points.

The Foreign Institutional Investors had taken out 12 billion dollars from the capital market leaving it in a debilitating condition.

The Cash Reserve Ratio had been cut by 1.5 per cent and the credit crunch is clearly visible.

Even the oil companies and industries who had got sanctioned approval of finances were not getting these released. The call money rates had zoomed and the Banks had practically stopped any fresh lendings. The realty sector was not at all encouraging, Mr Javadekar observed.


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