Below the radar

Call it coincidence,but there seems some connection between the indigenous submarine Arihant and the UPAs focus on economic growth. Both are made for stealth: the nuclear-powered Arihant is built to avoid the turning gyres of radar; the few economic reforms in UPA I amp; II were designed in secrecy,as if to avoid the public radar. Both submarine and fiscal prudence were also the highlights of UPA-IIs 68-page Report to the People,released on Tuesday by Prime Minister Manmohan Singh,Sonia Gandhi and a galaxy of UPA coalition members.

The report tom-toms a growth rate of 9 per cent in the first four years of UPA-I,a creditable 6.5 per cent during the recession hit 2008-09 when world markets teetered,and a 2009-10 growth of 7.4 per cent. To quote from the report: The recovery of the Indian economy owes largely to the stimulus measures initiated by the government. Now that recession fears have subsided,so must the stimulus. But the sight of an array of cabinet ministers and coalition heavyweights acknow-ledging the importance of economic growth sends out two messages. The first is that GDP growth is not a political Achilles Heel; it is the engine that runs the UPAs ambitious public sector spending. The second is that the UPA must do a lot more to regain and surpass 9 per cent growth. Caution on reform will only hurt it.

There are specific measures pending that will aid GDP growth. The Pension Fund and Regulatory Development Authority Bill,to which the Presidents Speech last June referred,is still waiting to become law. Then there is the bill amending labour laws to encourage small enterprises where most of the new jobs are to hire more workers. The two bills on insurance reform are similarly languishing in the pearly gates of parliamentary process. Moves to introduce foreign investment in retail that will benefit every one from consumers to producers,except an unhealthy alliance of middlemen are also cramped by political lethargy. Finally,amendments to the Land Acquisition Act that are actually fairer to farmers,and which Mamata Banerjee has stalled in political paranoia,will ease the stand-offs between big business,small landowners and the state. If UPA-II wants to boast its economic successes in future Reports to the People,doing nothing is not an option.