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".


Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 5,2020

Mar 5: The Kerala government has given its nod to a proposal aimed at encouraging students aged between 18 and 25 years to take up part-time jobs while pursuing education so as to help them gain work experience and hone their skills.

The government has decided to accept the proposal as a policy decision at the Cabinet meeting held on Wednesday, an official press release said.

The aim is to ensure that in a fiscal, 90 days of work is assured for students in government departments, local body organisations, PSUs and private companies.

This will help in developing a work culture among students.

Honorariums will be given to students by the organisations employing them part-time, the release said.

Students aged between 18 and 25 years will be permitted to become part of the scheme which will help them to gain work experience and hone their skills, the release added.

In another decision, the government decided to release Rs 26 crore from the Chief Minister's disaster relief fund for providing compensation to farmers who suffered crop loss during the 2018 floods.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
July 24,2020

New Delhi, Jul 24: The Delhi High Court on Friday asked the ICMR to come out with a clarification that mobile number, government-issued identity card, photographs or even a residential proof ought not to be insisted upon for Covid-19 test of mentally ill homeless persons.

According to an Indian Council of Medical Research (ICMR) advisory of June 19, every person who was to be tested for Covid-19 has to provide a government-issued identity proof and should have a valid phone number for tracing and tracking the individual and his/her contacts.

A bench of Chief Justice D N Patel and Justice Prateek Jalan said that ICMR should issue a clarification by way of a circular or an official order that the identity proof, address proof and mobile number are not required for testing mentally ill homeless persons.

The high court said a camp can be organised for testing such persons as is being done across Delhi for others.

"Guidelines have to be given by you (ICMR). You put it in black and white for the states'' benefit. You only need to clarify in two-three lines that mobile number, address proof and identity cards are not required for testing mentally ill homeless persons," it said.

"Use your powers for the public at large. Once you do so (issue the clarification), all states will comply," the bench added.

Additional Solicitor General Chetan Sharma, appearing for ICMR, sought time to take instructions from the government regarding the observations made by the bench.

The high court, thereafter, listed the matter for further hearing on August 7.

The bench was hearing a PIL moved by advocate Gaurav Kumar Bansal seeking directions to ICMR and Delhi government to issue guidelines for Covid-19 testing of mentally ill homeless persons in the national capital.

Coronavirus India update: State-wise total number of confirmed cases, deaths on July 24

The high court on July 9 had asked the ICMR to consider the plight of the mentally ill homeless persons and see whether they can be tested without insisting upon a mobile number, government issue identity card and residential address proof.

The bench had said to ICMR that many homeless mentally ill persons are institutionalised or in shelter homes and therefore, traceable, so there was no need for their identity proof or phone numbers to test them for Covid-19.

In response to the court''s query, ICMR has filed an affidavit stating that the purpose behind the submission of government identity card and telephone number was to ensure proper tracking and treatment of positive cases and their contacts as ''Test/Track/Treat'' is the best strategy for control of Covid-19 pandemic. 

It further said that since health was a state subject, the concerned state health authority may consider adopting a suitable protocol to ensure that the strategy of ''Test/Track/Treat'' is followed and the grievance raised in the PIL is also addressed.

ICMR, in its affidavit, has said that it has only advised facilitating contact tracing as well as tracking of the Covid-19 infected patients.

"The modalities regarding the contact tracing as well as tracking of the Covid-19 infected patients completely falls under the domain of IDSP. NCDC and state health authorities. 

"ICMR is a research organization and the contact tracing, as well as tracking of the Covid-19 infected patients, is not under the domain of ICMR," it has said in its affidavit.

Bansal has claimed in his petition that the Delhi government has not taken seriously the lack of guidelines with respect to Covid-19 testing of mentally ill homeless persons.

Coronavirus Worldometer | 15 countries with the highest number of cases, deaths due to the Covid-19 pandemic

He has said the high court had on June 9 directed it to address the grievances raised by him in another PIL with regard to mentally ill homeless persons in accordance with law, rules, regulations and government policy.

He said that on June 13 he also sent a representation to the Chief Secretary of Delhi government for providing treatment to mentally ill homeless persons in the national capital who have no residence proof. 

However, nothing was done by the Delhi government, he had told the court.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
May 31,2020

Mumbai, May 31: Shiv Sena leader Sanjay Raut on Sunday alleged that the event held in Ahmedabad to welcome US President Donald Trump in February was responsible for the spread of coronavirus in Gujarat and later in Mumbai and Delhi, which some of his delegates had visited.

Raut also hit out at the Centre saying that the lockdown was implemented without any planning, but now the responsibility of lifting the curbs was left to the states.

The Sena MP said that despite the opposition BJP's attempts to pull down the Maharashtra Vikas Aghadi (MVA) government, there was no threat to it as its survival is the 'majboori' (compulsion) of all the three ruling allies- Sena, NCP and Congress.

"It can't be denied that the spread of coronavirus in Gujarat was because of the massive public gathering held to welcome US President Donald Trump. Some of the delegates, who accompanied Trump, also visited Mumbai, Delhi, which led to the spread of the virus," Raut said in his weekly column in Shiv Sena mouthpiece 'Saamana'.

On February 24, Trump along with Prime Minister Narendra Modi had taken part in a road-show in Ahmedabad, which was attended by thousands of people. After the road- show, the two leaders had addressed a gathering of over one lakh people at Motera cricket stadium, run by Gujarat Cricket Association (GCA).

Gujarat had reported its first coronavirus cases on March 20, when samples of a man from Rajkot and a woman from Surat tested positive for the disease.

Raut said that any move to pull down the Uddhav Thackeray-led MVA government and impose President's rule in the state citing its failure to curb the coronavirus pandemic would be suicidal.

"The state had witnessed how President's rule was imposed and lifted as per will six months ago," he said.

"If the handling of coronavirus cases is the basis of imposing President's rule, then it should be done in at least 17 states, including the BJP-ruled ones. Even the central government has failed to curb the pandemic as it had no planning to fight the virus," he said.

"The lockdown was imposed without any planning and now without any plan, the responsibility of lifting it has been left to the states. This chaos will further worsen the crisis," he said.

The Sena MP said that Congress leader Rahul Gandhi has made an excellent analysis of how the lockdown has failed.

"It is shocking that people can indulge in politics by demanding President's rule in Maharashtra for the rise in the coronavirus cases," he said.

BJP MP Narayan Rane had recently met Maharashtra Governor B S Koshyari and demanded imposition of President's rule in view of the the Shiv Sena-led state government's "failure" in tackling the coronavirus pandemic. However, the BJP had later said that it was not trying to destabilise the government.

Speaking about the stability of the government, Raut said that the survival of the MVA government was the 'majboori' (compulsion) of each of the three alliance partners.

"Even if there are internal conflicts among the ruling partners, there is no threat to the government as the allies know that its survival is the 'majboori' of each one of them," Raut said.

He said that the Devendra Fadnavis-led government, in which the BJP and Shiv Sena shared power, saw internal conflicts between the ruling allies, but it completed its full five-year term.

Slamming Fadnavis, who is now the Leader of Opposition in the Legislative Assembly, for predicting downfall of the MVA government saying it will fall on its own due to its internal bickering.

"If the Fadnavis government, which witnessed deep internal conflicts between BJP and Sena, didn't fall, how can this one collapse? The Fadnavis government survived despite the (Sena) ministers carrying their resignation letters in their pockets," Raut wrote.

Fadnavis, in an online media interaction held earlier recently, said he had no intention to destabilise the MVA government and said it would collapse on its own.

"What Fadnavis means is that all attempts (of the BJP) to create discord among the three allies and break the MLAs has failed. Now the opposition hopes that something would happen among the allies and the government would be fall apart," he said.

Raut said NCP president Sharad Pawar is the prominent leader, who laid the foundation stone of the "Thackeray sarkar", and only he can predict the future of the government.

"He continues to say the government is stable and even the Congress is not going anywhere. MVA legislators are not up for sale in horse-trading. Hence, if the opposition says that the government will fall, it is wrong," he said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.