PM defends economic reforms; Says, hard decisions have to be taken to protect the interests of common man and restore investors' confidence
The Prime Minister has said that hard decisions have to be taken to protect the interests of common man and restore investors' confidence in country's economy. Addressing the nation last evening, Dr. Manmohan Singh said that UPA government is the government of the aam aadmi.
Explaining the reasons for recent economic policy decisions taken by the government, Dr. Singh said the difficult decisions were taken to raise the revenues to finance programmes in eduction, healthcare, housing, rural employment and to generate jobs for the youth.
Saying that the world economy including China, the US and Europe are struggling to deal with an economic slowdown, the Prime Minister asserted that India has been able to limit the effect of the global crisis.
Justifying the rise is diesel prices and the cap on LPG cylinders, Dr. Singh said that almost 80 per cent of oil is imported and oil prices in the world market have increased sharply in the past four years. Explaining that these increased prices were not passed on to the people to protect them from hardship, he disclosed that as a result the subsidy on petroleum products grew enormously to 1 lakh 40 thousand crores rupees last year.
Making a case that much of diesel is used by big cars and SUVs owned by the rich and by factories and businesses, Dr. Singh asked as to why should government run large fiscal deficits to subsidise them.
About the cap of 6 subsidised cylinders per year, Dr. Singh said actually only this number of cylinders are used by the needy people. He said that the price of kerosene was not touched as it is consumed by the poor.
Talking on allowing foreign investment in retail trade, the Prime Minister said that the opening of organised retail to foreign investment will benefit the farmers. He said that according to the regulations those, who bring FDI have to invest 50 per cent of their money in building new warehouses, cold storage and modern transport systems. This will help to ensure that a one-third of our fruits and vegetables, which at present are wasted because of storage and transit losses, actually, reach the consumer.
The Prime Minister said that though the state government are free to decide whether they want to allow FDI in Retail or not, he however cautioned that one state should not stop another state from seeking a better life for its farmers, for its youth and for its consumers.
