PM appeals to parties to help pass key economic legislations

From V S Chandrasekar
On Board PM's Special Aircraft, Sep 27 (PTI) Indian Prime
Minister Manmohan Singh Tuesday appealed to political parties
across the spectrum to work together to ensure passage of
important economic legislations in Parliament and to maintain
a growth path which will see GDP rate of 9 per cent.
He also said Foreign Direct Investment (FDI) in the
retail sector would be allowed after a political consensus is
evolved but held out an assurance that whatever decisions the
government would take will not affect small retail traders in
the country.
Addressing a press conference while returning home from a
7-day trip to New York to attend the United Nations General
Assembly, he listed the crucial economic legislations to be
passed like the one to increase FDI in insurance sector,
Pension Reforms Bill, Goods and Services Tax Bill, Public
Procurement Policy and the Lokpal Bill.
Singh said "I would like to appeal to all political
parties which have interest of the country at heart that we
can work together. Politics will continue to divide but there
are limits to which we can carry political perception".
With the support of all political parties, the Prime
Minister said "we can concentrate on the essential pieces of
legislation like the passage of the bill to raise FDI in
insurance sector, to pass the bill on Pension Reforms, the GST
and Lokpal."
"We want to also put in place Public Procurement
Policies. We also have structured Bills in the field of
education. If we have the consensus on all the bills among the
parties, then the Indian economy has the capacity to weather
the storm and come out of that successfully," he said.
On how the government would insulate the economy from oil
price rise in the context of Middle East crisis, the Prime
Minister said he would not say that there will be no effect by
the uncertain situation.
"We have a savings rate of 34 to 35 per cent and
investment has been been 37 per cent. With this, we can
maintain a growth rate of close to 8.5 per cent. If we spend
those savings well on infrastructure, this would help in good
GDP rate and keep India on the growth path even if the world
finds it difficult," he said.
To a question that RBI's efforts to contain inflation has
not shown a sense of urgency, the Prime Minister said the
government has done whatever it could to tame inflation.
"But legislations require cooperation between government
and opposition. We will continue to make efforts to contain
inflation. But even against a difficult condition, the rate of
growth will not be below seven to eight per cent. My analysis
shows even the US shows a growth rate of 0.4 per cent," he
said.
He said whatever had happened in 2008 in the world was
collapse of economy and banking system.
"The growth rate in India will still be respected despite
global conditions. If international prices go up, then there
is no way we can avoid its impact on domestic situation.
Despite all this, food prices are stable," Singh said.
"In 2008, the global economy was collapsing and the world
banking system was in trouble. But the Indian economy has been
able to project a growth rate of 6.7 per cent and we want to
raise it to 8 per cent. Even in this troubled year, if we are
able to record 7.8 to 8.5 per cent, this will be phenomenal.
"We can do better if all political parties across the
spectrum work together to ensure passage of important
economic legislations in Parliament and to maintain a growth
path which will see GDP rate of 9 per cent," he said.