Present econimic recession could lead country to bankruptcy,Yashwant

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Ranchi, Oct 16 (UNI) Senior BJP leader Yashwant Sinha today said the present global economic crisis could lead the country to bankruptcy if preventive measures were not taken immediately by the Centre.

''Our industry production rate has slumped to 1.3 per cent which was around 10.9 per cent in August, 2007,'' Mr Sinha told reporters in Hazaribagh.

The former finance minister said the country had about 300 billion of foreign currency which was reduced to 280 billion affecting about 15 per cent of the total population.

''Around 15 crores of people have invested their money in present market and any adverse impact could put them into trouble,'' Mr Sinha added.

He said the Centre had also refused to provide loans to small industries on pretext of economic crisis in the market forcing them to close down their production units.

Comparing the nature of economic crisis of India with that of America, he said, '' ours was facing supply crisis but their economic system collapsed due to financial crisis.'' Criticising Prime Minister Manmohan Singh and Finance Minister P Chidambaram for the present economic imbalance in the country, he said that the government should make clear announcement about its basic economic principles.

''It's ridiculous that both the PM and the FM who are also known as eminent economists seem helpless to take any step to maintain the economic stability of the country,'' Mr Sinha said here yesterday while addressing 'party's ''Vijay Sankalp rally'' at Morhabadi ground.

He also warned that India could also become bankrupt if preventive measures were not taken soon.

UNI AM KK RN1943

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