INDIA: Prime Minister Manmohan Singh says five-year growth target of 8 percent is ambitious

Record ID: 1375235

  • Title: INDIA: Prime Minister Manmohan Singh says five-year growth target of 8 percent is ambitious
  • Date: 27th December 2012
  • Summary: NEW DELHI, INDIA (DECEMBER 27, 2012) (ORIGINALLY 4:3) (ANI-NO ACCESS BBC) INDIA'S FINANCE MINISTER PALANIAPPAN CHIDAMBARAM, FARM MINISTER SHARAD PAWAR, DEFENCE MINISTER ARACKAPARAMBIL KURIEN ANTONY AND HEALTH MINISTER GHULAM NABI AZAD GREETING STATE CHIEF OF WESTERN GUJARAT, NARENDRA MODI DELEGATES AT THE NATIONAL DEVELOPMENT COUNCIL (NDC) MEETING INDIA'S PRIME MINISTER, MANMOHAN SINGH, ARRIVING AT THE MEETING CHIDAMBARAM SITTING SINGH WALKING TOWARDS THE PODIUM (SOUNDBITE) (English) INDIA'S PRIME MINISTER, MANMOHAN SINGH, SAYING: "I must emphasise that achieving an average of 8 per cent growth following less than 6 per cent in the first year is still an ambitious target. As the Plan document makes clear, the high growth scenario will definitely not materialise if we follow a 'business as usual' policy." AUDIENCE SITTING (SOUNDBITE) (English) INDIA'S PRIME MINISTER, MANMOHAN SINGH, SAYING: "Immediate adjustment of prices to close the gap is not feasible, I realise this. But, some phased price adjustment is necessary. Energy experts are unanimous that we cannot expect to achieve rapid, inclusive and sustainable growth if we are not willing to undertake a phased adjustment in energy prices to bring them in line with world prices." NEWLY ELECTED STATE CHIEF OF HIMACHAL PRADESH IN NORTH INDIA, VIRBHADRA SINGH, SITTING (SOUNDBITE) (English) INDIA'S PRIME MINISTER, MANMOHAN SINGH, SAYING: "The government has decided to review the present laws and examine the levels of punishment in cases of aggravated sexual assault. A committee of eminent jurists headed by the former Chief Justice of India, Justice J. S. Verma has been constituted for this purpose. Let me state categorically that the issue of safety and security of women is of the highest concern to our government." AUDIENCE SITTING CONFERENCE IN PROGRESS
  • Embargoed: 11th January 2013 19:32
  • Keywords:
  • Location: India
  • Country: India
  • Topics: Economy,Politics
  • Reuters ID: LVADPJG4K2UL9SKHY1FCT21ST0NQ
  • Aspect Ratio: 4:3
  • Story Text: Indian Prime Minister Manmohan Singh struck a downbeat note on the challenges facing the Indian economy on Thursday (December 27), dubbing a five-year plan for average growth of 8 percent "ambitious".
    The Prime Minister was addressing Chief Ministers and top bureaucrats at a meeting of, the National Development Council, in New Delhi.
    India's GDP growth has languished below 6 percent for three straight quarters, a far cry from the near-double-digit pace of expansion before the 2008 global financial downturn.
    Economic growth for the fiscal year ending in March is expected to be 5.7-5.9 percent, India's slowest since 2002-03.
    "I must emphasise that achieving an average of 8 per cent growth following less than 6 per cent in the first year is still an ambitious target. As the Plan document makes clear, the high growth scenario will definitely not materialise if we follow a 'business as usual' policy," Singh said.
    The downturn prodded Singh, castigated for years of policy inertia, to launch the most daring initiatives of his tenure in September, including raising subsidised diesel prices and opening the retail and other sectors to foreign players.
    Analysts say the government must take more reform steps quickly, including speeding up the process for approval of investment projects, overhauling the tax system and reducing a swollen fiscal deficit by reining in its subsidy bill.
    Singh said that subsidies on energy products should be limited, with a phased adjustment of prices.
    "Immediate adjustment of prices to close the gap is not feasible, I realise this. But, some phased price adjustment is necessary. Energy experts are unanimous that we cannot expect to achieve rapid, inclusive and sustainable growth if we are not willing to undertake a phased adjustment in energy prices to bring them in line with world prices," Singh said.
    He added that early implementation of a Goods and Services Tax (GST), a long-delayed plan intended to replace myriad state and central taxes, was critical to raise the tax/GDP ratio.
    Singh also addressed the issue of enhanced safety for women during his speech. The Prime Minister said that the government would reassess legal provisions and terms of punishment for cases of sexual assault.
    "The government has decided to review the present laws and examine the levels of punishment in cases of aggravated sexual assault. A committee of eminent jurists headed by the former Chief Justice of India, Justice J. S. Verma has been constituted for this purpose. Let me state categorically that the issue of safety and security of women is of the highest concern to our government," Singh said.
    In an unusual televised address earlier this week, Singh called for calm following the weekend clashes during anti-rape protests in New Delhi and vowed to punish the men who raped and brutalised a 23 year-old medical student for their "monstrous" crime.
    Singh's government, often accused by critics of being out of touch with the aspirations of many Indians, has been caught off-guard by the depth of the popular outrage as protests have snowballed and spread to other cities. India is seen as one of the most unsafe places in the world to be a woman.
    Instead of channelling the outrage, the government has found itself on the defensive over the use of force against the protesters and complaints that it has done little in its eight years in power to create a safer environment for women.
    New Delhi has the highest number of sex crimes among India's major cities, with a rape reported on average every 18 hours, according to police figures.
    Most sexual assaults in India go unreported, but the brutality of the recent attack triggered the biggest protests in the capital since mid-2011 demonstrations against corruption that rocked the government of Prime Minister Manmohan Singh.
    Women in India face a multitude of threats, from illegal abortions of female foetuses due to a preference for sons, to the murders of brides by in-laws for want of more dowry, child marriage and human trafficking.
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