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
May 30,2020

New Delhi, May 30: The Congress on Friday described the first year of the Modi government as a "year of disappointment, disastrous management and diabolical pain".

Congress leader K C Venugopal said the six years of the Modi dispensation have seen fraying of bonds of empathy, fraternity and brotherhood with increase in acts of communal and sectarian violence.

Congress chief spokesperson Randeep Surjewala said that at the end of six years, it appears the Modi government is at war with its people and is inflicting wounds on them, instead of healing them.

"It is inflicting wounds on Mother India," he said.

"This government is trying to fill coffers of the select rich and is inflicting pain on the poor," Surjewala said.

On the BJP's charge of the Congress playing politics over the COVID-19 crisis, Venugopal said the opposition party did not indulge in any politics and gave suggestions instead.

"Being a responsible opposition, it is our duty to raise the problems faced by the common people. As opposition, we highlighted the failures of the government," he said.

Venugopal said the government "is totally insensitive" to the plight of migrant labourers and farmers.

Surjewala also demanded that a virtual session of Parliament be convened immediately to discuss pressing issues and the due process be set in motion for holding of meetings of various parliamentary committees.

Modi and his cabinet had taken oath on this day last year for a second term in office.

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Agencies
May 19,2020

Lucknow, May 19: The administration of the Sanjay Gandhi Post Graduate Institute of Medical Sciences (SGPGI) has ordered a probe into the cardiac procedure conducted on a corona positive patient in the hospital.

The patient underwent a cardiac procedure without being tested for corona before the surgery. He later tested positive for COVID-19, leading to panic among the staff and other patients.

The medical staff that came in contact with the patient were quarantined on Monday while the area was sanitized.

As per orders from the State Medical Education Department, even in emergency cases, patients are to be screened for Covid-19 before procedures are done.

According to the SGPGI administration, the incident took place late on Sunday night.

In an official statement, director, Prof R.K. Dhiman said, "The 63-year-old patient was a case of complete cardiac blockage and needed an urgent temporary pacemaker. The patient was admitted to the holding area of the institute and later shifted to the MICU for permanent pace making."

He said that when the patient's corona status was found to be positive on the Hospital Information System, she was shifted to the Rajdhani COVID Hospital.

The Director said, "Though the involved areas have been sanitized and healthcare workers were quarantined as per protocol, a probe has been ordered to investigate the lapses."

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News Network
January 2,2020

United Nations, Jan 2: Nearly 400,000 babies were born around the world on New Year's Day with India recording the highest number of these births worldwide at 67,385, the UN children's agency said.

An estimated 392,078 babies were born around the world on New Year's Day, according to UNICEF. Of this, an estimated 67,385 babies were born in India, the most globally. China comes in second with 46,299 births.

The beginning of a new year and a new decade is an opportunity to reflect on our hopes and aspirations not only for our future, but the future of those who will come after us,” UNICEF Executive Director Henrietta Fore said.

As the calendar flips each January, we are reminded of all the possibility and potential of each child embarking on her or his life's journey—if they are just given that chance.”

Fiji in the Pacific most likely delivered 2020's first baby, while the US, the last of the New Year's Day. Globally, over half of these births were estimated to have taken place in eight countries - India (67,385), China (46,299), Nigeria (26,039), Pakistan (16,787), Indonesia (13,020), United States of America (10,452), Democratic Republic of Congo (10,247) and Ethiopia (8,493).

Each January, UNICEF celebrates babies born on New Year's Day, an auspicious day for child birth around the world, it said. However, for millions of newborns around the world, the day of their birth is far less auspicious.

In 2018, 2.5 million newborns died in just their first month of life; about a third of them on the first day of life. Among those children, most died from preventable causes such as premature birth, complications during delivery, and infections like sepsis. In addition, more than 2.5 million babies are born dead each year.

UNICEF said over the past three decades, the world has seen remarkable progress in child survival, cutting the number of children worldwide who die before their fifth birthday by more than half. But there has been slower progress for newborns. Babies dying in the first month accounted for 47 per cent of all deaths among children under five in 2018, up from 40 per cent in 1990.

UNICEF's Every Child Alive campaign calls for immediate investment in health workers with the right training, who are equipped with the right medicines to ensure every mother and newborn is cared for by a safe pair of hands to prevent and treat complications during pregnancy, delivery and birth.

Too many mothers and newborns are not being cared for by a trained and equipped midwife or nurse, and the results are devastating,” said Fore. “We can ensure that millions of babies survive their first day and live into this decade and beyond if every one of them is born into a safe pair of hands.”

India is projected to surpass China as the world's most populous country around 2027. According to UN estimates, India is expected to add nearly 273 million people between 2019 and 2050, while the population of Nigeria is projected to grow by 200 million. Together, these two countries could account for 23 per cent of the global population increase to 2050.

China, with 1.43 billion people in 2019, and India, with 1.37 billion, have long been the two most populous countries of the world, comprising 19 and 18 per cent, respectively, of the global total in 2019. Through the end of the century, India is estimated to remain the world's most populous country with nearly 1.5 billion inhabitants, followed by China with just under 1.1 billion, Nigeria with 733 million, the US with 434 million, and Pakistan with 403 million inhabitants.

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