For the second time in two months Finance Minister P. Chidambaram found himself officially countering claims made by BJP’s Prime Ministerial candidate Narendra Modi on the rupee.
Modi reportedly said that Atal Bihari Vajpayee’s (Prime Minister during NDA regime of 1998-2004 and also for 13 days in 1996) regime did not the let value of the rupee fall.
Countering this, in a statement issued here on Wednesday, Chidambaram said, “The exchange rate of the rupee was Rs 39.49 to the dollar in March 1998 when NDA first formed the Government. It declined to Rs 42.84 in May, 1999 when the NDA again formed the Government after the elections. It further declined to Rs 45.33 on May 21, 2004 when NDA demitted office.”
The Finance Minister also said this (Modi’s statement on rupee) was yet another item in the “collection” of history lessons from the Gujarat Chief Minister. Modi made his remark in the backdrop of recent rupee slide at a public meeting.
The rupee dipped to an all-time low of 68.34 against a dollar on August 28 from 54-55 against a dollar in May. Currently, it is trading in the range of 62-63 against a dollar.
“The two worst years since the turn of the century were 2000-01 (4.3 per cent) and 2002-03 (4.0 per cent). If there was a golden period of growth, it was the five-year period under UPA-I,” the Finance Minister said, wondering “why Narendra Modi should stage a fake encounter with facts. Ultimately, facts will prevail.”
On November 1, Chidambaram remarked, “I am glad that he (Modi) is beginning to take interest in the Indian economy. As he takes more interest, he will discover that there is much more to learn. First they have to unlearn a lot, then learn.”
shishir.s@thehindu.co.in