Vows Reforms, But Reveals No New Plans
Addressing the annual session of the Confederation of Indian Industry (CII) after seven years, Singh said slowing down of economic growth to 5% was clearly disappointing but termed it as a temporary downturn and vowed to get back to 8% growth with deeper economic reforms. He reeled out the steps taken so far to revive growth but did not unveil any fresh plans to steer the economy out of the troubled waters.
"If the business mood was unduly optimistic in 2007, I think it unduly pessimistic today. This needs correction," Singh said to muted reaction from industrialists present in the room. "I would urge Indian industry to have faith in our determination and avoid getting swamped by negativism. I urge each one of you to keep faith and call on you to partner with the government in our effort to put the economy back on the path laid out in the Twelfth Plan," the PM said.
PM to Sinha: All records with JPC P rime Minister Manmohan Singh has rejected the BJP's demand that he appear before the 2G scam JPC, saying all pertinent records and documents have already been placed before the committee. Responding to BJP leader Yashwant Sinha's letter urging him to be a witness and reply to the allegations levelled by former telecom minister A Raja, Singh said the decision on who to summon must be taken by the committee and its chair. P 10 SHOOTING FROM THE LIP
Business mood was unduly optimistic in 2007, unduly pessimistic today
In 2007, I often heard it that government had become irrelevant because India will grow at 9% whatever the government does. The consensus today is that unless the government acts swiftly, our growth, which has already decelerated, will be perennially stuck at 5%
I urge Indian industry to have faith in our determination and avoid getting swamped by negativism
There are many deficiencies. Corruption is a problem. Bureaucratic inertia is a problem. Managing coalitions is not easy. But these problems have not arisen suddenly
Govt reviewing FDI policy comprehensively, Land Acquisition Bill in parliament soon Manmohan takes dig at India Inc
Slowing economic growth, stubborn inflation, widening current account and fiscal deficits, delay in implementation of projects have sapped confidence and attracted strong criticism from India Inc.
Prime Minister Manmohan Singh admitted there were many deficiencies but said they existed even when the economy was growing at 8%. "One of the advantages of being a democracy is that our shortcomings and deficiencies are always put before us. And there are many deficiencies. Corruption is a problem. Bureaucratic inertia is a problem. Managing coalitions is not easy. But these problems have not arisen suddenly," the PM said.
Singh, the architect of India's economic reforms, also took a dig at Indian industry saying he welcomed the rediscovery on the part of business of the importance of government. "In 2007, I often heard it that government had become irrelevant because India will grow at 9% whatever the government does. The consensus today is that unless the government acts swiftly, our growth which has already decelerated will be perennially stuck at 5%," Singh said.
The PM also admitted that there was a need to revive sentiment and create an environment in which enterprise can flourish and create both jobs and growth. "The environment today is not what it should be, and that is what the government must correct," Singh said and called for efforts to forcefully deal with the several domestic constraints that have arisen and which must be removed to enable the economy to perform at its full potential. "... and we must prove the prophets of gloom as wrong. We are seeing, I believe, a temporary downturn, which does happen. After all, business cycles have been a recurrent theme of all textbooks in economics in the past. I believe, we have seen a temporary downturn, which does happen from time to time. We must recognize it as such and take corrective action," Singh said.
The PM said the government was determined to "everything possible to achieve the fiscal deficit target" outlined in the 2013-14 budget and also promised all steps to ensure that capital inflows remain strong to finance the current account deficit.
He also said inflation was softening but still remained a problem and needs to be brought down further. Singh, the economist-turned politician, said the full effect of the steps unveiled in the 2013-14 budget would be felt in the next few months and hoped that they help improve investor sentiment.
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