Home Economy High growth set against inflation and poor farm output: PM

High growth set against inflation and poor farm output: PM

By IANS

New Delhi : Even though robust economic growth and a high investment rate were the highpoints of the Indian economy during the past three years, poor agricultural performance and high inflation have been prime reasons for concern, Prime Minister Manmohan Singh has said.

In the foreword to a report card to people on three years of the United Progressive Alliance (UPA) government released here Wednesday, the prime minister also said the doubling of credit to the farm sector and hikes in the procurement price for wheat and rice had managed to shift the terms of trade in favour of agriculture.

"All reasonable measures will be adopted to accelerate the tempo of agricultural production and strengthen the public distribution system," Manmohan Singh said in the report released at a meeting of all UPA constituents.

"In this 60th year of our independence, the country should have the satisfaction of recording for the fifth year in succession a rate of economic growth of over 8.5 percent," the prime minister said.

"The recent acceleration of growth to 9 percent has been made possible by an unprecedented increase in the rate of investment, which is at an all-time high of around 35 percent of national income," he added.

At the same time, he acknowledged that high national income growth alone does not address the challenge of employment promotion, poverty reduction and balanced regional development, nor does growth in itself improve human development.

"Taken together, all major initiatives of our government in agriculture, rural development, industry, urban development, infrastructure, services, education healthcare and every other facet of life are aimed at promoting inclusive growth."

The 66-page report card lists in detail the achievements of the government under a host of topics, ranging from social justice and governance to foreign policy, disaster management, minority empowerment and social sector.

Turning to some worries, Manmohan Singh said high economic growth had unleashed some pressures on prices, which was compounded by a shortfall in production of some commodities of mass consumption.

"We have been faced with galloping demand for many products and this resulted in inflation becoming a cause for concern particularly in the case of few essential commodities."

"We have taken credible steps to control inflation and continue to be vigilant on this front so that the poor and vulnerable sections of society do not suffer unduly," he added.

The prime minister also said most points raised in the Common Minimum Programme, the agenda of governance for the UPA coalition, had been implemented, adding by the end of its tenure the government would have delivered more than what it had promised.

"In this 60th year of our independence let us all resolve to build a new India, a caring India."