The Prime Minister has said that effective policy measures will be taken to enable the country return to the high growth trajectory. Dr. Manmohan Singh appealed to all political parties to work with the government to restore the momentum of growth. The Prime Minister was talking to media persons on board the special aircraft while returing to New Delhi after a successful visit to Mexico and Brazil last night.
Dr. Singh said, problems in fiscal management including balance of payments deficit in the current account will be tackled effectively and credibly. Asserting that the country is not experiencing stagflation but a slowdown, he said policies will be put in place to ensure that the growth rate of the economy will be back to seven percent at the end of this fiscal.
Replying to a question, the Prime Minister said, events in the last couple of days convinced him that there are no international solutions to problems of India's size and diversity.
Referring to the balance of payment crisis, the Prime Minister said, India needs foreign investment both in portfolio as well as direct investment. Dr Singh also made it clear that obstacles and policy impediments hindering investments will be removed.
He said, as far as rupee is concerned, it is operating on a system which is market based exchange rate and the government curbs violent fluctuations. Expressing confidence that the measures outlined by the government in the recent days, the rupee will return to a more stable path.
On the reported lack of co-operation from state governments in implementing projects, the Prime Minister said, when it comes to facing fundamental problems of the country, all political parties will have to work with the Centre in attracting investments and ensure high growth.
On whether he would appeal to Mamata Banerjee to support Pranab's candidature in the Presidential election, Dr. Manmohan Singh said, the Trinamool Congress continues to be with the UPA and said he still has not given up hope on Trinamool Congress finding its way in supporting the candidature of Mr. Mukherjee. He said he had spoken to BJP leaders including LK Advani to support Mr Mukerjee.
Pointing out that he has been pondering upon a number of issues including that of the Finance Minister, the Prime Minister said a number of issues need to be resolved and it will not be proper for him to speak about them when he is outside the country.
On probable cabinet expansion, Dr. Singh said it is a legitimate expectation and the media will get to know about it when it takes place.
Asked whether the government is ready with a plan to meet any contingency if the monsoon fails, the Prime Minister said the there is a record amount of food stocks in reserve far in excess of needs and the government is ready to deal with any contingency, if there is a shortfall in production on account of the monsoon.
Referring to criticism from certain quarters on India giving 10 billion dollars to the IMF to meet the crisis in Euro Zone, Dr Singh said there is nothing wrong in contributing to IMF. Dr. Manmohan Singh reached New Delhi late last night.
