Rise above politics to write our growth story,PM tells parties

“These are the circumstances in which our economy has to chart out a path. And I would be the last one to say that we do not face difficulties,” Singh said in reply to the debate in the Rajya Sabha on Motion of Thanks to the President for her Address.

He asked the members to recognise the “pitfalls and dangers that lie ahead if we do not rise to the occasion and help the government to undertake remedial measures in time”.

In the Rajya Sabha,Singh exuded confidence that India can revert to the 9 per cent growth rate. He said,”This is an occasion when we must eschew narrow partisan approach and stand united as a cohesive nation.”

Singh’s remarks,however,irked another key alley,NCP. Party chief and Union Minister Sharad Pawar later said: ”We are pained by the PM’s statement on UPA allies.”

Talking about difficulties,the economist Prime Minister referred to balance of payment deficit on current account,which is now as high as 3.6 per cent,the deficit on fiscal balance account of 5.9 per cent and said this could be tolerated year after year.

Pointing out to the fragile recovery the industrialised nations had registered in the wake of the 2008-09 financial crisis,Singh said this has resulted in too much liquidity in the world economy resulting in “pressure on balance of payment” and “pressure on prices”.

Terming the seven per cent growth as “commendable” under the circumstances,he stressed the need to strive to improve upon this next year,saying “we must do this while also ensuring that we make progress towards our objective of achieving the inclusive growth with reasonable price stability.”

Singh also sought support from political formations to raise economic growth rate,saying,”We need a broad-based national consensus covering all sections of political opinion represented in this august House.”

He said the 12th Plan,to be placed before the National Development Council (NDC) around mid-year,will lay out a credible plan of action for faster,sustainable and more inclusive growth. “I do not wish to go into details,but only wish to remind the members that our path is not easy.”

Indian economy grew by over 9 per cent before the global financial meltdown pulled it down to 6.7 per cent in 2008-09. The growth in the current fiscal is likely to moderate to a three-year low of 6.9 per cent,down from 8.4 per cent in the two preceding years. For the next fiscal,the government expects a growth of 7.6 per cent.

Though the government had initially projected a growth rate of 9 per cent for 2011-12,it has now been estimated at 6.9 per cent.

The Prime Minister said he did not agree to BJP’s charge that the President’s address does not lay out a road map as not only does it highlight the working of existing programmes but also new initiatives to bring about faster,sustainable and more inclusive growth.

He said Finance Minister Pranab Mukherjee has already explained in his Budget speech the government’s approach on how to deal with the blackmoney menace.

“He has also promised the government will come forward with a White Paper. I,therefore,hope there will be ample opportunities in the rest of the session to deal with these issues,” he said.