Subramanian Swamy wants a 'crisis management team' in PMO

New Delhi, Sep 16: Predicting a major crash in the economy between coming November and February, BJP leader Subramanian Swamy has asked Prime Minister Narendra Modi to create a 'crisis management team' in the PMO for taking urgent steps to see that the economy does not spiral down.

"Based on my reading of the various indicators of Indian economy, I feel compelled to inform you that the economy is in its early phase of a tailspin," he said in a letter to Modi adding if urgent steps were not taken a major crash was inevitable.

Suggesting two steps to reverse the trend, he said "One is to enthuse the middle class by abolishing Income Tax because by this step the benefit to them will be direct and immediate unlike other measures which are indirect and slow."

He further said RBI Governor Raghuram Rajan for some "inexplicable reason" claims that "high rate of interest is the only way to control inflation much like quack doctors who believe that the way to bring high fever down of a patient is to kill him".

The second step, he suggested, is to bring down the prime lending rate of interest down to 8 per cent and finally down to 5 per cent, while retaining the rate of interest for fixed deposits.

"Therefore, I urge you to take personal interest and create a crisis management team within the PMO for taking urgent steps to see that Indian economy does not spiral down to crash," Swamy said.

PTI