NEW DELHI (Reuters) - The rupee's tumble is a "matter of concern", but is part of a needed adjustment due to India's large current account deficit and will have a positive impact on export competitiveness in coming months, Prime Minister Manmohan Singh said on Friday.

Singh told parliament that the current account deficit was "unsustainably large" and to remedy this there needed to be a reduction in demand for gold and oil imports.

He added that although the rupee was overshooting on the foreign exchanges India was not contemplating any capital controls.

(Reporting by John Chalmers)