|
New Delhi: Prime
Minister Manmohan Singh Friday strongly defended his government's
fresh economic reforms, saying "hard decisions" were needed to
boost investor confidence domestically and globally.
In a nationally televised address, the prime minister hit out at
the opposition of misleading the country and urged the people to
have trust in his leadership.
"The time has come for hard decisions. For this I need your trust,
your understanding and your cooperation," he said, comparing the
situation with 1991 when India embraced sweeping economic reforms.
"We are at a point where we can reverse the slowdown in our
growth. We need a revival in investor confidence domestically and
globally," he said. "The decisions we have taken recently are
necessary for this purpose."
The prime minister's speech came hours after the Trinamool
Congress quit his government over the decisions to hike diesel
prices, cap the supply of cooking gas cylinders and allow FDI in
multi-brand retail trade.
In his speech, Manmohan Singh defended all three decisions.
He said that subsidy on petroleum products had grown enormously,
and would have been over Rs.200,000 crore this year.
"If we had not acted, it would have meant a higher fiscal deficit,
that is, an unsustainable increase in government expenditure
vis-a-vis government income.
"If unchecked, this would lead to a further steep rise in prices
and a loss of confidence in our economy."
He said India had faced a similar situation in 1991 when "nobody
was willing to lend us even small amounts of money".
"We are not in that situation today, but we must act before people
lose confidence in our economy."
On the decision to limit to six the number of cooking gas
cylinders a family can get each year, the prime minister said that
"almost half of our people ... actually use only six cylinders or
less".
"We have ensured they are not affected. Others will still get six
subsidised cylinders, but they must pay a higher price for more,"
adding the price of kerosene, the poor man's fuel, remained
unchanged.
Manmohan Singh denied accusations that allowing foreign direct
investment in retail would hurt small traders. "This is not true."
He said that organised and modern retailing was already present in
India and growing.
In Delhi, he said, despite the increasing number of shopping
centres, there was a three fold increase in the number of small
shops.
"The fear that small retailers will be wiped out is completely
baseless."
The speech, in Hindi and English, came a day after parts of India
shut down in response to calls from anti-Congress political
parties opposed to the economic decisions.
The economist-turned-politician said the people of India "have a
right to know the truth about why we have taken these decisions".
The US and Europe, he said, were struggling to deal with an
economic slowdown and financial crisis. Even China was slowing
down. India too had been affected but not majorly.
"The world is not kind to those who do not tackle their own
problems. Many European countries are in this position today."
"I am determined to see that India will not be pushed into that
situation. But I can succeed only if I can persuade you to
understand why we had to act."
Manmohan Singh said that in the last eight years, Indian economy
had grown at a record annual rate of 8.2 percent.
"I promise you that I will do everything necessary to put our
country back on the path of high and inclusive growth. But I need
your support.
"Please do not be misled by those who want to confuse you by
spreading fear and false information. The same tactics were
adopted in 1991. They did not succeed then. They will not succeed
now."
|
Comments
|
Quick links