With the rupee breaching an all time low of Rs 68 against the US dollar and fears of mounting fiscal deficit, BJP today said the government has run out of ideas and should quit.
The Left parties attacked the government's policies and said the country was heading towards an economic emergency.
The BJP asserted the UPA government should step down charging that it has "completely run out of ideas to deal with the crisis".
"I have been saying that the only thing that will stabilise rupee and market at this point of time is for the government to resign and go for fresh elections," BJP leader and former finance minister Yashwant Sinha said.
"Indian economy under Manmohan Singh is on ventilator in the ICU...It is happening because of big CAD and fiscal deficit, and complete lack of trust of investors in the present ruling establishment," Ravi Shankar Prasad Deputy leader of opposition in the Rajya Sabha said.
Endorsing Sinha's views, Prasad said that "sooner the government goes better it will be for the country" as the present dispensation has "completely run out of ideas."
"Why is the Prime Minister silent," he asked, saying in the prevailing crisis, it was for the economist PM to assure the country of the steps being taken to deal with it.
Making a veiled remark on enhanced public expenditure envisaged by the government on account of the proposed Food Security Bill, Prasad said "...In this scenario you keep doing reckless expenditure and populist measures. These will only aggravate the problem."
"Manmohan Singh became the Finance Minister and later the Prime Minister of this country due to his reputation of being a great economist. If he cannot control the slide of the Rupee or improve the state of the economy then he has no right to continue in office and should step down," BJP spokesperson Shahnawaz Hussain said.
Another party spokesperson Prakash Javadekar blamed the fall of the rupee against the US dollar on "complete bankruptcy of ideas, indecision and non-governance of the UPA government".
"Manmohan Singh and his team of ministers are clearly to be blamed and must own responsibility. If the government would have taken timely action on the import-export front and would have done massive public investment in infrastructure, the health of the economy would have been better," he said.
Citing an example of Mexico and other countries which faced a similar challenge, Javadekar said they showcased how they could stabilise their currency with a major push of reforms. This helped them withstand the pressure created by the sudden outflow of FIIs.
"The country and its people will have to pay for the follies of this government. There will be all round price rise and millions will lose jobs and the common man will suffer. It is the non-governance of the UPA which is responsible for the crisis," he said.
The BJP leader charged that the government is clueless and the economic situation has gone out of hand.
CPI leader Gurudas Dasgupta said the country is heading towards "economic emergency." He said speculators were having a hey day and the government was showing no political will to contain the situation.
"Dollar growing is actually the rich parking their money in foreign currencies because they seem to have lost faith in Indian economy, because the Indian economy's domestic demand is not growing," CPI (M) politburo member Sitaram Yechury said.
"What is required is to stop these incentives for the rich. You are giving these incentives of more than Rs 5 lakh crore every year in terms of tax concessions. These incentives are making the rich park their money in gold, forex and real estate. Stop these incentives and invest this money to build infrastructure that will generate jobs," he suggested.
Triggered by both domestic developments and fears of a war breaking out in West Asia, the rupee plunged to a new record low of 68.75 per dollar in the intra-day trade.
Even oil prices rose in Asian trade today on concerns over possible US military action against Syria after Washington criticised President Bashar al-Assad's regime for an alleged chemical weapons attack
© Copyright PTI. All rights reserved. Republication or redistribution of any PTI content, including by framing or similar means, is expressly prohibited without their prior written consent.