Pranab exit paves way for Manmohan to become FM

UPA presidential nominee Pranab Mukherjee, who resigned as the Union Finance Minister and bid farewell to active politics after several decades on Tuesday, has said that he is honoured and humbled at his nomination.
Addressing mediapersons on his last day in the North Block office, the veteran Congressman said that he would miss his finance ministry colleagues, adding, "Today I embark on a new journey."

Pranab's exit has paved the way for the return of Manmohan Singh to the finance ministry. The Prime Minister has taken additional charge of the crucial ministry - a move that is sure to raise the hopes of the markets and corporates and if Singh's recent comments are anything to go by, decisive action to turn around the economy maybe on the way.

Manmohan Singh says that as far as the rupee is concerned, our operating system is market based exchange rate. We intervene only to curb violent fluctuations. I am confident that measures that I have outlined they will return the rupee also to a more stable path.

The PM also said that there is no stagflation in growth but a slow down. I am still confident that we can ensure that the growth rate of the economy in the rest of the year improves to about 7% per annum. Will we owe it to our country to take all the necessary decisions which would return the country to a high growth path. I recognise that we have to work our way to restore the momentum of growth which India needs and which the people of India want the government of India to work for. In this regard, I would urge all political parties to work with the government to restore the momentum of growth that this country is capable of which this country needs.

“India needs foreign investment both portfolio investment and direct investment. If there are any obstacles that come in the way, if there is any policy impeachment we will address those problems effectively and credibly,” says Manmohan Singh.

Below is the letter written by the Prime Minister Dr Manmohan Singh to Pranab Mukherjee in response to his resignation tendered today. Following is the text of the PM’s letter:

“I have received your letter of June 26, 2012 resigning from the Union Cabinet. I have forwarded your resignation to Rashtrapatiji with the recommendation that it be accepted with immediate effect.

Our government owes a deep debt of gratitude to you for your invaluable contribution to its work over the last eight years. It is a testimony to your extraordinary abilities and your stature in public life that you have carried on onerous range of responsibilities with ease and accomplishment. Our colleagues in the Cabinet and I have benefitted from your wise counsel on innumerable occasions and we will all deeply miss your presence amidst us. We hope to see you occupy the exalted position of President next month and are confident that our country and people will continue to benefit from your wisdom, knowledge and decades of experience in public life.

I wish you success in the election to the highest office in the country. I also wish you sustained good health and happiness in the years to come.”

(With inputs from IBNlive)