New Delhi, Jul 19 (IANS): Prime Minister Manmohan Singh Friday assured the industry that government is taking action to improve the economy.

"I know that business is deeply concerned about the slowdown in the economy," Manmohan Singh said addressing the annual general meeting of industrial chamber ASSOCHAM.

"When things are going bad, as they seem to be at present, it is the responsibility of the government to become proactive. The biggest concern is volatility of foreign exchange," he said.

The prime minister said that the situation arose as large amounts of funds were withdrawn from the market, which led to the rupee's depreciation.

"We are committed to bringing down the current account deficit, from both demand and supply side," he added.

Talking about the current account deficit of the country, which is at 4.7 percent of the gross domestic product (GDP) in 2012-13, he said "it is possible to bring it down to 2.5 percent but that cannot happen in one year". He added that it would come down to some extent in 2013-14.