Courage and risk needed to get higher growth: PM

September 15, 2012

Mohan_Singh

New Delhi, September 15: After unleashing big bang reforms measures in the last two days, Prime Minister Manmohan Singh today said it will take "courage and some risks" to break the policy logjam and strongly favoured higher FDI and FII flows.

Justifying the diesel price hike as an important step in the right direction, he said, rational energy pricing was critical and "our energy prices are out of line with world prices".

In his opening remarks at the full Planning Commission meeting for approving the 12th Plan document, the Prime Minister spoke of three economic scenarios of "strong inclusive growth", "insufficient action" and "policy logjam" and said the country needed close to one trillion dollar investment in infrastructure sector during the period.

"I believe that we can make Scenario I possible. It will take courage and some risks but it should be our endeavour to ensure that it materialises. The country deserves no less," he said.

In big ticket reforms, the Cabinet Committee on Political Affairs on Thursday decided to hike diesel prices and put a cap on supply of subsidised LPG cylinders while yesterday the Cabinet and CCEA cleared  FDI in multi-brand retailing and aviation and disinvestment in four PSUs.

Referring to high fiscal deficit and the need to bring it down, the Prime Minister said the 12th Plan projects a current account deficit of 2.9 per cent of GDP.

"This must be financed mainly through Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) flows so that reliance on  external debt is limited. I believe we can attract the financing we need provided out fiscal deficit is seen to be coming under control and the growth momentum is regained",he said.

Singh said, energy is a difficult area where policy needs a comprehensive review. "Rational energy pricing is therefore critical. Our energy prices are out of line with the world prices. The recent increase in diesel price is an important step in the right direction."

The Prime Minister said the central message of the Plan is that the objectives can be achieved provided policies that will take care of weaknesses put in place. For the first time the Plan introduces three alternative scenarios.

Under Scenario I called "strong inclusive growth" one can expect a number of virtuous cycles to start operating leading to positive results on both growth and inclusion. "This is the scenario we should aim for".

Scenario II, called "insufficient action", describes state of partial action with weak implementation. In this scenario, the virtuous cycles that reinforce growth in Scenario I, will not kick in, and growth can easily slow down to 6 to 6.5 per cent.

Singh said inclusiveness will also suffer. "This is where we will end up if we make only half-hearted efforts and slip in implementation. It is my sincere hope that we do not do so."

Calling Scenario III as "policy logjam", he said it reflects a situation where for one reason or another most of the policies needed to achieve Scenario I are not taken.

"If this continues for any length of time, vicious cycles begin to set in and growth could easily collapse to about 5 per cent per year, with very poor outcomes on inclusion.

"I urge everyone interested in the country's future to understand fully the implications of this scenario. They will quickly come to an agreement that the people of India deserve better than this," Singh said.

Referring to global economic issues, Prime Minister said, "these short term problems present a challenge, but they should not lead to undue pessimism about our medium term prospects.

"The economy has gained many strengths. Our immediate priority must be to orchestrate a rebound in the second half of the current year. We should then try to accelerate growth to reach around 9 percent by the end of the Plan period," he added.

The 12th Plan (2012-17) is proposing an annual average growth rate of 8.2 per cent, which is lower than the earlier estimate of 9 per cent. The economy recorded a growth rate of 7.9 per cent in the 11th Plan.

According to the Prime Minister, the 11th Plan growth rate was commendable, "for a period which saw two global crises – one in 2008 and another in 2011".

Singh further said that poverty declined twice as fast between financial years 2004-05 and 2009-10 than it did in the previous ten years, while agriculture grew at 3.3 percent per year in the 11th Plan, much faster than the 2.4 percent observed in the 10th Plan.

As regards the growth prospects in the 12th Plan, Singh said, "we must also recognise that the 12th Plan is starting in a year when the world economy is experiencing difficulties and our economy has also slowed down".

Referring to scaling down of the target in the 12th Plan from the original estimate of 9 per cent to 8.2 per cent, he said, "some downward revision is realistic given the state of the world".


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Agencies
March 25,2020

New Delhi, Mar 25: The Indian Rail Catering and Tourism Corporation (IRCTC) on Wednesday appealed to the people not to cancel their e-tickets on their own in case of trains being cancelled by the national transporter due to nation-wide lockdown to help curb the spread of novel coronavirus pandemic.

Clearing the doubts of the railway passengers, IRCTC spokesperson Siddharth Singh said, "Doubts have been raised regarding cancellation of e-tickets subsequent to the halting of railway passenger trains.

"It may be submitted that for trains cancelled by the railways in its complete run, refund on e-tickets is full and automatic. In this case, no cancellation exercise is required to be done on the part of the user," he said.

The IRCTC official said that if user cancels his e-ticket in situations of train cancellations, there are chances he may get "less refund". "Hence passengers are advised not to cancel e-tickets on their own for those trains which have been cancelled by the railways," he said.

He also said that the refund amount will be credited to the user account used for booking e-tickets automatically and no charges will be deducted by the railways in case of train cancellation.

His remarks came as the national transporter announced the suspension of the passenger, mail and express services from March 23 till March 31. However, the railways extended the suspension of services till April 14 in the wake of the three week lockdown announced by Prime Minister Narendra Modi from March 25 during his second special address to the nation on Tuesday night.

The railways has cancelled over 13,600 passengers trains across the country in a bid to combat the spread of novel coronavirus. Only freight trains are running to ensure the supply of essential services. About 9,000 freight trains are transporting essential items every day across the country.

On Wednesday, India recorded 562 cases of COVID-19 with 10 deaths.

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News Network
March 3,2020

Chennai, Mar 3: The Madras High Court has ruled that if a working woman gives birth to a child in the second delivery after twins in the first, she is not entitled to maternity benefits as it should be treated as third child.

"As per existing rules, a woman can avail such benefits only for her first two deliveries. Even otherwise it is debatable as to whether the delivery is not a second delivery but a third one, in as much as ordinarily when twins are born they are delivered one after another, and their age and their inter-se elderly status is also determined by virtue of the gap of time between their arrivals, which amounts to two deliveries and not one simultaneous act," the court said.

The first bench, comprising Chief Justice A P Sahi and Justice Subramonium Prasad stated this while allowing the appeal from Ministry of Home Affairs.

It set aside the order June 18 2019 order of a single Judge, who extended 180 days of maternity leave and other benefits to a woman member of the Central Industrial Security Force (CISF) under the rules governing the Tamil Nadu government servants.

The issue pertains to an appeal moved by the ministry, which contended that the leave claim is by a member of CISF to whom the maternity rules of Tamil Nadu would not apply.

She would be covered by the maternity benefits as provided under the Central Civil Services (Leave) Rules, the ministry said.

When the appeal came up for hearing, the bench said it found that a second delivery, which, in the present case, resulted in a third child, cannot be interpreted so as to add to the mathematical precision that is defined in the rules.

The admissibility of benefits would be limited if the claimant has not more than two children, the bench said "This fact therefore changes the entire nature of the relief which is sought for by the woman petitioner, which aspect has been completely overlooked by the single judge", the bench said.

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Agencies
January 16,2020

Lucknow, Jan 16: The drive initiated by Uttar Pradesh's Yogi Adityanath government to identify non-Muslim immigrants in the state seems to have run into rough weather.

In Pilibhit, where the maximum number of about 35,000 illegal immigrants has been identified, it has now been found that information is being sought by the state government on an unverified document. A large number of families from Bangladesh settled here several decades ago.

The survey began last month even before the bill was notified. Moreover, the feedback email on the questionnaire is a Gmail ID -- [email protected] -- which is not a government server.

It is not known how the state government is drawing up the lists without having the verification criteria.

After the report was put up by a news website, Home Department officials feigned complete ignorance about the issue.

A spokesman said: "This was an unofficial and preliminary exercise to assess the number of illegal migrants in the state. The document is meant to collect basic beneficiary information. No list of potential beneficiaries has yet been sent to Delhi."

The document has eight columns asking for name, father's name, place of stay in India, and where did they come from and when. It does not mention any requirement of proof, or documents.

It also asks for a description of the kind of atrocities they faced, presumably in their home country.

The District Magistrate of Pilibhit claimed they are checking documents of the refugees, but denied any knowledge of the unsigned document.

The CAA is meant to benefit Hindus, Sikhs, Buddhists, Jains, Parsis and Christians from Pakistan, Bangladesh and Afghanistan who came to India before December 31, 2014. The statement of purposes of the Act adds that it is meant to benefit those fleeing religious persecution from the above countries.

Comments

Abdullah
 - 
Thursday, 16 Jan 2020

Yogi is unfit to be CM as he does not know what he speaks and does.   Its unfortunate that we are such idiot as CM.    Instead of CAA we need PAA (Politician amendment act).    We need age limit of politicians to be fixed to 65 or maximum 70 years and any one coming in politics to be free from any bad doing.   No rapists/murders/looters/decoits should be allowed to contest election.   Presently 90 percent of the politicians have bad record.  Few are rapists, murders, having spent jail term etc.    

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