New Delhi, July 25 (KNN) Raising concern over declining value of Rupee against Dollar, Lok Sabha MP from Kerala has asked the about the preventive measures being taken by it to deal with the situation.

Speaking during the Question Hour in the Lok Sabha, P Karunakaran, a Member of Parliament from Kasargod in Kerala, who is also the leader of the Loksabha for CPI, said, “I would like to place before this House a serious economic situation arisen in our country.”

He said the Government claims that there is a better growth rate of our economy and other indicators are favorable. But the Report from various sources, including the Morgan Stanley, has pointed out that there is a  strong sign of weakness of our financial situation.   

“It is mainly because of the declined value of Rupee against Dollar. It is still declining and the Dollar is at a better position now. It is mainly because of a large scale withdrawal of foreign investment in last one year,” Karunakaran said.

He pointed that over the previous three months, abroad investor withdrew Rs. 61,000  crore.

The Government claimed that the FPI and FDI are increasing, he said adding that the FPI is more important because it is related to investment which promotes employment and production.

On the other hand, the FDI comes, where the corporate may get more and more benefits, the MP said.

Due to this mass scale withdrawal, there may be reduction in employment and production and its cascading effects, he added.

He stressed that demonetization, GST and other unfortunate incidences, that are taking places in our country, are the factors which are also contributing in this withdrawal.

He asked the government about the preventive measures taken by it. (KNN Bureau)