October 30, 2009 8:42 PM

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Govt. to go ahead with reforms in labour and financial sectors :PM

The Prime Minister Dr Manmohan Singh today said his government will move ahead with reforms in labour and financial sectors. He, however added that investment in the rural sector will be the real growth engine for the economy to expand by 9 to 10 per cent. Addressing the HT Leadership Summit in New Delhi, he said, increased investment in rural infrastructure, more emphasis on health and education is of the greatest importance. Dr Singh said, an environment conducive to the growth of entrepreneurship in the urban economy as well ensuring greater government involvement in rural development is required. Prime Minister said, the main challenge in the next decade will be to achieve and sustain high rates of economic growth and ensure that it remains remains equitable.<br/><br/>Earlier, speaking in the same conference, the Finance Minister Mr Pranab Mukherji said, the government is trying to build a broad political consensus to clear the crucial legislations, including the labour and the insurance bills as soon as possible. He said, this is necessary to push forward the reforms for returning to 9 per cent economic growth. Mr Mukherji said, Agriculture growth this year will be negative at minus two per cent as a result of adverse impact of drought particularly on kharif crop. The Finance Minister said faced with global economic slowdown, the government thought resources need to be injected to generate demand particularly in rural sectors.

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