Project economy: Courage and risk needed to ensure inclusive growth, says PM

A day after big ticket reforms were pushed by the government, including FDI in multi-brand retail and aviation sector, Prime Minister Manmohan Singh said courage and risks were needed to achieve "strong inclusive growth".

Prime Minister Manmohan Singh. PHOTO: Associated Press

After unleashing big bang reforms measures in the last two days, Prime Minister Manmohan Singh said it will take "courage and some risks" to break the policy logjam. Singh strongly favoured higher foreign direct investment (FDI) and foreign institutional investor (FII) flows.

In his opening remarks at the full Planning Commission meeting for approving the 12th Plan document, the Prime Minister spoke of three economic scenarios of "strong inclusive growth", "insufficient action" and "policy logjam" and said the country needed close to one trillion dollar investment in infrastructure sector during the period.

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Outlining the three scenarios, he said Scenario I called "strong inclusive growth" presents what is possible if the policy actions mentioned in the Plan are substantially implemented.

"I believe that we can make Scenario I possible. It will take courage and some risks but it should be our endeavour to ensure that it materialises. The country deserves no less," he said.

In big ticket reforms, the Cabinet Committee on Political Affairs on September 13 decided to hike diesel prices and put a cap on supply of subsidised LPG cylinders while on September 14, the Cabinet Committee on Economic Affairs (CCEA) cleared FDI in multi-brand retailing and aviation, and disinvestment in four PSUs.

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Referring to high fiscal deficit and the need to bring it down, the Prime Minister said the 12th Plan projects a current account deficit of 2.9 per cent of GDP.

"This must be financed mainly through FDI and FII flows so that reliance on external debt is limited. I believe we can attract the financing we need provided out fiscal deficit is seen to be coming under control and the growth momentum is regained."

with inputs from PTI

Published on: Sep 15, 2012, 2:42 PM IST

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Project economy: Courage and risk needed to ensure inclusive growth, says PM

A day after big ticket reforms were pushed by the government, including FDI in multi-brand retail and aviation sector, Prime Minister Manmohan Singh said courage and risks were needed to achieve "strong inclusive growth".

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