Govt, RBI should have continuous dialogue to address problems affecting economy: Venkaiah Naidu
New Delhi, Nov 27 : In apparent reference to the recent spat between the government and the Reserve Bank, Vice President M Venkaiah Naidu Tuesday said there should be a regular dialogue between the two in the boardroom to arrive at solutions to address problems affecting economy.
Referring to the issue of liquidity crunch, Naidu said the problem was because few "black sheep" who have taken the system for ride, affecting the entire industry.
"All of us have to introspect. Politicians... and the industry. A few people.. have taken the system for a ride and banks lent money left and right...
"RBI was not doing things at that time and now they have tightened everything, so there are there are problems...," he said.
Naidu said these problems have to analysed and understood. The Reserve Bank of India (RBI) and the government of India must have a regular continuous dialogue.
"There is no question of who is powerful or who is final. Final are the people and their interest. All these systems are created to facilitate people's welfare.
"So they should have to have a dialogue within their boardroom rather than discussions through media and then come to some solutions addressing the actual problems," he said while addressing the diamond jubilee celebrations of the Confederation of Indian Textile Industry (CITI) here.
Amid growing tensions with the central bank, the Finance Ministry had earlier sought discussions under the never-used-before Section 7 of the RBI Act which empowers the government to issue directions to the RBI Governor.
RBI Deputy Governor Viral Acharya had in a speech last month talked about the independence of the central bank, arguing that any compromise could be "potentially catastrophic" for the economy.
On November 19, the RBI board had held a marathon meeting amid a rift between the central bank and the government over several issues including how much capital the apex bank needs, lending norms for small and medium enterprises and rules for weak banks.
Following the meeting, the RBI and the government agreed to refer to an expert committee the contentious issue of appropriate size of reserves that the RBI must hold, while restructuring of stressed loans of small businesses would be considered by the central bank.
Vice-President Naidu further said India was the most favoured destination for investment and global organisations like World Bank and World Economic Forum, which are of the view that if the country continues with its reform process, it will become the third-largest economy in the world.
He also called upon the textiles industry, which contributes more than 3 per cent to the GDP, to adopt new innovative technology in line with the demands of 4th industrial revolution.
Addressing the gathering, Textiles Minister Smriti Zubin Irani said the government was committed for the growth of the textile industry.
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Surjewala attacks Centre on LPG cylinder crisis, asks BJP how it will face voters
Bengaluru (PTI): Attacking the Narendra Modi-led government in the centre over the LPG cylinder crisis in the country, Congress General Secretary Randeep Singh Surjewala on Friday asked the BJP, how will it go to the voters in poll-bound states.
Claiming that the country was facing a "huge crisis", he attacked the centre over the depreciation of the Indian rupee to Rs 93 against the US dollar, terming it "worrisome" for both the economy and employment.
Surjewala, who is also the party in charge of Karnataka, said that during the tenure of Manmohan Singh as PM, Modi had said that the "prestige of the prime minister falls when the value of the rupee declines". Then the value of the Indian Rupee against the USD was at Rs 54 for a dollar.
Speaking to reporters here, he alleged that despite the current situation, the government and the BJP remained "on mute mode", while ordinary households, small dhabas, restaurants and eateries were facing a severe crisis with a shortage of both commercial and domestic gas.
"Today, the Indian rupee has fallen to 93 rupees to a dollar, but the BJP, Prime Minister Modi and their government remains on a mute mode. Ordinary households, small dhabas and restaurants, and small eateries feel the crisis today. No commercial gas is available, no domestic gas is available," he claimed.
The Congress leader alleged that people were buying gas cylinders in black at Rs 1,300.
"At this price, we will have to employ a security guard to protect every cylinder in India," he said sarcastically and alleged that the BJP is not taking responsibility for the situation.
He further alleged that the Centre had raised the price of domestic gas twice and commercial gas thrice, and also increased the price of premium petrol and diesel.
"Tomorrow you will again raise the price of petrol and diesel. What should the ordinary Indian do? Does the BJP have any answer? Do they even have a right to go and seek votes?" he asked.
While Assam, Tamil Nadu, Kerala, West Bengal and Puducherry are facing Assembly polls, two seats in Karnataka -- Davangere South and Bagalkote -- will go for by-elections.
Speaking to reporters here, Surjewala demanded answers from BJP leaders and JD(S) leader H D Kumaraswamy.
"We demand from Kumarswamy why he is keeping mum? Why are they quiet? Price of commercial gas goes up three times, price of domestic gas goes up two times, price of premium petrol and diesel goes up, price of petrol and diesel is about to go up," he said.
Alleging that while the unemployment rate for graduates in India is 67 per cent and the artificial intelligence revolution is leading to loss of jobs in India, he alleged that the BJP does only communal politics.
The Congress leader asserted that the BJP had no right to seek votes until it answered these questions.
