The Prime Minister, Dr Manmohan Singh, on Saturday questioned the feasibility of achieving 9 per cent growth target, as proposed by the Approach Paper to the 12th Plan.
“It is relevant to ask whether this is feasible since the economy is currently slowing down,” he said in his opening remarks at the 56th National Development Council (NDC) meeting. At the same time, Dr Singh cautioned against negativism.
“The current slowdown is a matter of concern, but it should be seen as a short-term phenomenon, reflecting highly unsettled conditions in the global economy.” Growth rates are being revised downwards in all countries for the current year, he added.
Although the Prime Minister raised doubts over the 9 per cent growth target, he clarified that he had absolutely no doubt that the country's longer term prospects were very good. The NDC meeting was called to approve the Approach Paper.
Dr Singh outlined a four-point agenda for the Government's role in the development process.
The Prime Minister felt that the Government must provide a policy environment in which the creative spirit of the farmers and entrepreneurs is given full support and encouragement. Besides, the Government has a very big role to play in developing the infrastructure needs in both rural and urban areas to support broad and inclusive growth.
In addition there must be special programmes for livelihood support for the poor and vulnerable.
Dr Singh also said that the Government must ensure that every citizen has access to essential public services of acceptable quality in health, education, skill development, provision of safe drinking water and sanitation.
Trying to remove the popular perception about policy paralysis, Dr Singh cautioned against the mood of negativism that seemed to have gripped the country.
“We can either become victims of negativism, criticising ourselves all the way, or work together to put ourselves firmly in the group of rising economies. Both optimism and pessimism have an infectious quality,” he added.
The Prime Minister called for bridging political differences over important reforms initiatives. “Parliamentary parties have to strike a difficult balance between maintaining adversarial political positions on many issues, while also co-operating to advance a shared longer term national agenda. This balance is not easy to strike,” he said.