India's PM sees growth pick up but inflation hit from rupee

Reuters

NEW DELHI (Reuters) - India's economy should pick up in the second half of fiscal year 2013/14 but there will also be pressure on inflation because of the rupee's sharp decline, Prime Minister Manmohan Singh told parliament on Friday.

Singh said the fundamentals of the Indian economy remained strong and emphasised the bright side of a weaker currency - more competitive exports that he predicted would be further boosted by better performance in the global economy.

He also said India's banks had seen an increase in non-performing assets, but were well capitalised above international requirements and able to deal with the situation.

(Reporting by Frank Jack Daniel; Editing by John Chalmers)

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