Economic statesman award for Sinha

NEW DELHI, AUG. 23. The Union Finance Minister, Mr. Yashwant Sinha, has said the rupee was one of the few Asian currencies to suffer the least depreciation after capital started flowing to the West for higher returns in recent times.

``After the U.S. FED started raising the interest rates, capital started flowing towards the West. All the currencies came under pressure (as a result). The rupee depreciated the least after the Singapore dollar in the region," Mr. Sinha said.

The Finance Minister was speaking here last night after receiving the most `Innovative economic statesman award' instituted by the World Quality Council.

The Indian currency depreciated about five per cent from April hitting an all-time low after it crossed 46 against the dollar recently.

On the rising international oil prices and its impact on the forex reserves, Mr. Sinha said "there is absolutely nothing to worry. We have over $36 billion reserves which can pay for full seven months of import bills." Mr. Sinha said.

"There has never been a dull day ever since I entered the office of the Finance Minister. The East Asian crisis accentuated and brought many countries to a temporary halt. We had sanctions imposed in the wake of nuclear tests.'' Mr. Sinha said after economic sanctions were imposed in 1998, many in the West thought that the country would not be able to withstand the pressure.

"There was also the impact of adverse sentiment. But I travelled across the country and told the small farmers, small scale industries, big business houses to stand up and manage the situation," he said.

During 1998, the prediction was that the Indian economy would grow only at 3.5 to four per cent of GDP, Mr. Sinha said.

"We proved everybody wrong and posted a commendable 6.8 per cent growth in 1998," he said.

- PTI

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