The opposition in the Centre took on Congress led UPA government for its weak economic policy and unable to tame the slumping of Indian currency in the international markets.
Attacking on UPA government Communist Party of India (CPI) leader Gurudas Dasgupta on Wednesday said that the country is on the brink of an 'economic emergency'.
"The government has no political will to hold the present situation. They are bringing ruin to the country. We have almost reached a situation where there maybe an economic emergency," Dasgupta said.
The leader of the major opposition party (BJP) Yashwant Sinha, who had been Finance Minister in BJP led National Democratic Alliance (NDA) government said that early election is the only solution of current weakening Indian economy as if UPA government remains in the power in the next eight or nine months, country would have to face more economic pain.
Targeting to Union Finance Minister P Chidambaram who recently announced that Rupee has been over sold, CPI leader Dasgupta said that he is inept to take decisions that can alleviate the present deteriorating condition of the country's economy.
"The government does not take care-it leaves everything to the market, when the market is collapsing. The government should take emergency steps. What is to be done should be a matter of discussion between the Finance Ministry and the Reserve Bank of India (RBI)," Dasgupta said.
"Everything is left to a single person known as Chidambaram-a lawyer turned economist. He is incapable of taking a decision. He is only talking about reforms. Reform does not mean that everything will be decided by the speculators," he added.
Earlier today, BJP leader Yashwant Sinha said that the economic future under the Congress-led UPA Government looks bleak.
"The only thing which will stabilize the market and the rupee is for the government to resign and to go for fresh elections-that is the only thing which is going to stabilize the market. I shudder to think what is going to happen over the next eight-nine months, if this government continues in power. Without any prejudice, I am saying let's go for elections otherwise we will suffer even more," Sinha said.
Further, Sinha alleged that the Centre had no control over the way markets are presently behaving in the country.
"The more important point that I have been making for many, many months now is that the government has lost control over the economy completely. They are helpless before the forces of the market and the result is that the market is behaving, pretty much, as it likes. ...The stock market is in a free fall, the rupee is in a free fall," Sinha said.
On Wednesday, the rupee continued to topple and hit its record low of 68.75 against the U.S. dollar.
In order to arrest the rupee slide, RBI had announced measures such as restriction on Indian firms investing abroad and on outward remittances by resident Indians, triggering talks of return of capital control regime.
Finance Minister P. Chidambaram had earlier on Tuesday during a debate on the economic situation in the Lok Sabha attributed much of the current economic woes to the stimulus provided to help the industry to tide over the problems emanating from the global financial meltdown of 2008.
"Fiscal deficit limits had been breached. The CAD had swelled. These were the two main challenges, apart from the number of other challenges that we had to face," he said.
Chidambaram, however, claimed that situation had improved till the unexpected development on May 22, 2013, when the US Federal Reserve announced tapering of bond purchases which sent the emerging markets in a tizzy.
"In the last 12 months there have been days when I have been more upbeat; days when I been more downcast. But the fact is some stability did return to the economy until a completely unexpectedly unexpected event took place on May 22, 2013", he said.
Meanwhile, global ratings agency Fitch on Monday said India's fiscal numbers "look weak" and warned of a downgrade if the country is unable to meet the fiscal deficit target.
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