Inclusive growth tops UPA's agenda once again

The United Progressive Alliance (UPA) Government is committed to maintaining high economic growth with low inflation particularly in relation to prices of essential agricultural and industrial commodities, President Pratibha Patil told a joint session of parliament on June 4. The Government will ensure that the growth process is not only accelerated but also made socially and regionally more inclusive and equitable, Patil said in her customary address.

The current financial year is expected to see a slowdown of growth on account of the global recession, but a range of measures taken by the Government in the past few months of its last term have begun to show results, Patil said. The immediate priority is to focus on management of the economy that will counter the effect of the global slowdown by a combination of sectoral and macro-level policies, the President said. The Government will focus attention on sectors that are adversely affected, especially Small and Medium Enterprises, Exports, Textiles, Commercial Vehicles, Infrastructure and Housing, according to the President. This will be accompanied by measures to achieve a countercyclical expansion in public investment in infrastructure sectors, including public-private partnerships, she said.

Infrastructure development will be a key focus area for the next five years, the President said, adding that public investment in infrastructure is of paramount importance. The Government will develop a roadmap for listing and people-ownership of public sector undertakings while ensuring that the Centre equity does not fall below 51%. The UPA will also steadfastly observe fiscal responsibility so that the ability of the Centre to invest in essential social and economic infrastructure is continuously enhanced.

The roadmap for moving towards a Goods and Services Tax (GST) will be vigorously pursued. The Government is fully seized of the issue of illegal money of Indian citizens outside the country in secret bank accounts. It will vigorously pursue all necessary steps in coordination with the countries concerned, the President said.

The Government intends to add at least 13,000 MW of new power generating capacity each year through a mix of coal, hydel, nuclear and renewable resources. The pace of oil and gas exploration will be intensified and India’s oil diplomacy will be aggressively pursued, Patil said. Reforms in the coal sector, for which a detailed blueprint has been prepared, will be pursued with urgency, she added. The international civil nuclear agreements will be operationalised with various countries even as domestic sources of uranium are exploited and work continues on the indigenously designed fast breeder and thorium reactors.