Inflation a concern; India heading for better times: PM
Admitting government's failure to contain inflation, Prime
Minister Manmohan Singh on Friday said high prices have helped farmers and
asserted the country was heading for better
times.
"...we have also not been as successful in controlling persistent inflation as we would have wished. This is primarily because food inflation has increased. However, we should remember that our inclusive policies have put more money in the hands of the weaker sections", Singh said while addressing a press conference, the third as Prime Minister.
The worry about inflation, he added, "is legitimate but we should also recognise that incomes for most people have increased faster than inflation."
While making a case for increasing supplies and improving marketing and logistics to contain food prices, especially of perishables like fruits and vegetables, he stressed "much of this work lies in the domain of the states."
As regards the growth, which has slipped to decade's low of 5 per cent in 2012-13, the Prime Minister attributed the slowdown to global factors but exuded confidence that the growth momentum would revive in the coming years.
"We are set for better times. The cycle of global economic growth is turning for the better. Many of the steps we have taken to address our domestic constraints are coming into play. India's own growth momentum will revive", he added.
He said that during the term of UPA, India for the first time in its recorded history, witnessed a sudden acceleration of economic growth to 9 per cent.
"This exceptional performance was followed by a slowdown initiated by the global financial crisis. Over the past couple of years, all emerging economies have experienced a slowdown.
India was no exception", he added.
Singh further added that it was not just the acceleration of growth that "gives me satisfaction. Equally important is the fact that we made the growth process more socially inclusive than it has ever been." .
Expressing the government's commitment to economic reforms, Prime Minister said "so long as we are in power we will continue to push for reforms...our government attaches highest priority to reforms.
"...we will continue to implement our policies, with vigour and commitment, aiming to revive growth, promote enterprise, generate employment, eliminate poverty and ensure the safety and security of all our people, particularly women and children."
India, he further said, "provides a hospitable environment for foreign direct investment (FDI). We will continue to improve our practises wherever needed."
Observing that over the past decade economy has gone through many ups and downs, Singh said, "we should not focus overly on the short term."
Citing the achievements of the government, Singh said that in 2004 it tried to give "a New Deal for Rural India" and pursued farmer friendly policies including raising support prices, expanding credit to farmers, and increasing investment in horticulture, rural development, and rural infrastructure, especially roads and electricity.
He further said that the Mahatma Gandhi National Rural Employment Guarantee Scheme has assured agricultural labour of a floor and has increased their bargaining power, besides improving delivery of health and education services.
Because of the policies pursued by the government, he said, percentage of the population below the poverty line has fallen much faster in the period 2004-2011 than it did in the previous ten year period and that the number of people below the poverty line has come down by 13.8 crore.
Referring to the issue of job creation, Singh said the government had not been able to do as well as it would have liked to and was working "hard" to improve the situation.
"I am concerned that we have not been as successful as we need to be in generating employment in the manufacturing sector . This is an aspect of performance which we are working hard to correct.
"We need a much stronger effort in support of small and medium enterprises which can be a major source of good quality employment. Our manufacturing strategy gives high priority to this objective for the future."
Hoping that the Food Security Act would to some extent shield the common man from rising food prices, he said, real wages in rural areas have increased faster than before and also the per-capita consumption in both rural and urban areas had increased significantly.
As regards the impact of external situation on domestic economy, the Prime Minister said, "the one lesson we shall all learn from our experience over the past decade is that the world around us is becoming more challenging.
"This is both a function of our greater integration with the world and of the international community's expectations from a rising India. This is India's manifest destiny. We should recognise it as such and learnt to deal with it."
The Prime Minister, faced a number of questions on corruption charges that sullied the image of UPA 2, asserted that the controversies surrounding coal blocks allocation scam and the 2G spectrum licences pertained to UPA I and people had voted the coalition back to power in 2009.
"Well as far as charge of corruption are concerned, most of the charges relate to period of UPA I. The coal block allocation as well 2G spectrum allocation, they were both in UPA I. We went to the electorate in 2009 and people gave us mandate to rule again.
"These charges have been raised from time to time by the media, CAG and courts. They belong to the previous five years. People of India entrusted us with the responsibility to rule Agni. They do no seem to have paid heed to all charges of corruption.," he said.
Asked if he could have done something differently on the corruption issue since it has tainted his Mr. Clean image, Singh said he felt "somewhat sad. It was I who insisted that spectrum allocation should be transparent and fair. It was I who insisted that the allocation of coal blocks should be on the basis of auction. These facts were forgotten.
"Opposition has vested interests. Sometimes the media plays into their hands. When history is written we will come out unscathed. This is not to say that there are no irregularities. But the dimensions of the problem have been overstated by the media, by CAG sometimes and other entities."
To various questions about his performance and how he would be judged, he said "I honestly believe that history will be kinder to me than the contemporary media or for that matter opposition parties."
Key takeaways:
-All emerging economies, including India faced slowdown in past couple of years
-We achieved a 9 per cent growth during UPA
-We are set for better times, cycles of global economic growth are improving
-Number of people below poverty line has come down: PM
-Worry about inflation is legitimate but income for most people have increased faster than inflation
-Not successful in controlling inflation, need to increase supplies to keep food prices under control
-Concerned over not generating employment in manufacturing sector; need efforts to support medium and small enterprises
-We will continue to implement our policies to revive growth, promote enterprise, generate employment and eliminate poverty
"...we have also not been as successful in controlling persistent inflation as we would have wished. This is primarily because food inflation has increased. However, we should remember that our inclusive policies have put more money in the hands of the weaker sections", Singh said while addressing a press conference, the third as Prime Minister.
The worry about inflation, he added, "is legitimate but we should also recognise that incomes for most people have increased faster than inflation."
While making a case for increasing supplies and improving marketing and logistics to contain food prices, especially of perishables like fruits and vegetables, he stressed "much of this work lies in the domain of the states."
As regards the growth, which has slipped to decade's low of 5 per cent in 2012-13, the Prime Minister attributed the slowdown to global factors but exuded confidence that the growth momentum would revive in the coming years.
"We are set for better times. The cycle of global economic growth is turning for the better. Many of the steps we have taken to address our domestic constraints are coming into play. India's own growth momentum will revive", he added.
He said that during the term of UPA, India for the first time in its recorded history, witnessed a sudden acceleration of economic growth to 9 per cent.
"This exceptional performance was followed by a slowdown initiated by the global financial crisis. Over the past couple of years, all emerging economies have experienced a slowdown.
India was no exception", he added.
Singh further added that it was not just the acceleration of growth that "gives me satisfaction. Equally important is the fact that we made the growth process more socially inclusive than it has ever been." .
Expressing the government's commitment to economic reforms, Prime Minister said "so long as we are in power we will continue to push for reforms...our government attaches highest priority to reforms.
"...we will continue to implement our policies, with vigour and commitment, aiming to revive growth, promote enterprise, generate employment, eliminate poverty and ensure the safety and security of all our people, particularly women and children."
India, he further said, "provides a hospitable environment for foreign direct investment (FDI). We will continue to improve our practises wherever needed."
Observing that over the past decade economy has gone through many ups and downs, Singh said, "we should not focus overly on the short term."
Citing the achievements of the government, Singh said that in 2004 it tried to give "a New Deal for Rural India" and pursued farmer friendly policies including raising support prices, expanding credit to farmers, and increasing investment in horticulture, rural development, and rural infrastructure, especially roads and electricity.
He further said that the Mahatma Gandhi National Rural Employment Guarantee Scheme has assured agricultural labour of a floor and has increased their bargaining power, besides improving delivery of health and education services.
Because of the policies pursued by the government, he said, percentage of the population below the poverty line has fallen much faster in the period 2004-2011 than it did in the previous ten year period and that the number of people below the poverty line has come down by 13.8 crore.
Referring to the issue of job creation, Singh said the government had not been able to do as well as it would have liked to and was working "hard" to improve the situation.
"I am concerned that we have not been as successful as we need to be in generating employment in the manufacturing sector . This is an aspect of performance which we are working hard to correct.
"We need a much stronger effort in support of small and medium enterprises which can be a major source of good quality employment. Our manufacturing strategy gives high priority to this objective for the future."
Hoping that the Food Security Act would to some extent shield the common man from rising food prices, he said, real wages in rural areas have increased faster than before and also the per-capita consumption in both rural and urban areas had increased significantly.
As regards the impact of external situation on domestic economy, the Prime Minister said, "the one lesson we shall all learn from our experience over the past decade is that the world around us is becoming more challenging.
"This is both a function of our greater integration with the world and of the international community's expectations from a rising India. This is India's manifest destiny. We should recognise it as such and learnt to deal with it."
The Prime Minister, faced a number of questions on corruption charges that sullied the image of UPA 2, asserted that the controversies surrounding coal blocks allocation scam and the 2G spectrum licences pertained to UPA I and people had voted the coalition back to power in 2009.
"Well as far as charge of corruption are concerned, most of the charges relate to period of UPA I. The coal block allocation as well 2G spectrum allocation, they were both in UPA I. We went to the electorate in 2009 and people gave us mandate to rule again.
"These charges have been raised from time to time by the media, CAG and courts. They belong to the previous five years. People of India entrusted us with the responsibility to rule Agni. They do no seem to have paid heed to all charges of corruption.," he said.
Asked if he could have done something differently on the corruption issue since it has tainted his Mr. Clean image, Singh said he felt "somewhat sad. It was I who insisted that spectrum allocation should be transparent and fair. It was I who insisted that the allocation of coal blocks should be on the basis of auction. These facts were forgotten.
"Opposition has vested interests. Sometimes the media plays into their hands. When history is written we will come out unscathed. This is not to say that there are no irregularities. But the dimensions of the problem have been overstated by the media, by CAG sometimes and other entities."
To various questions about his performance and how he would be judged, he said "I honestly believe that history will be kinder to me than the contemporary media or for that matter opposition parties."
Key takeaways:
-All emerging economies, including India faced slowdown in past couple of years
-We achieved a 9 per cent growth during UPA
-We are set for better times, cycles of global economic growth are improving
-Number of people below poverty line has come down: PM
-Worry about inflation is legitimate but income for most people have increased faster than inflation
-Not successful in controlling inflation, need to increase supplies to keep food prices under control
-Concerned over not generating employment in manufacturing sector; need efforts to support medium and small enterprises
-We will continue to implement our policies to revive growth, promote enterprise, generate employment and eliminate poverty
Inflation a concern; India heading for better times: PM
Reviewed by Unknown
on
9:04:00 PM
Rating:
Reviewed by Unknown
on
9:04:00 PM
Rating:
No comments