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Aug 17, 2013 at 04:27pm IST

Current economic situation not like the 1991 crisis, says PM Manmohan Singh

New Delhi: Amidst the worries of the markets crash and rupee fall, Prime Minister Manmohan Singh has said that the current situation is not comparable with the 1991 economic crisis. Speaking to CNBC-TV18, Manmohan Singh said that currently, the Indian situation is much stronger.

He said that India has reserves for over seven months of imports. Speaking to PTI too, the Prime Minister ruled out the possibility of reversing the path to globalisation of the economy.

"There is no no question of going back to 1991 (balance of payment crisis). At that time foreign exchange in India was a fixed rate. Now it is linked to market. We only correct the volatility of the rupee," he told PTI.

Against the backdrop of the high Current Account Deficit (CAD) the Prime Minister was asked about fears in some quarters that the country may be witnessing a throw back to 1991 crisis when gold was pledged and the country was forced to adopt a reforms programme that put it on the path of globalisation of economy.

He was speaking after release of the fourth volume of RBI history titled "RBI History-Looking Back and Looking Ahead" at a small function at his Race Course residence. When asked that the Current Account Deficit was still high, Singh acknowledged the problem saying high imports of gold was one of the major factors contributing to it.

(With additional information from PTI)