Govt will step up reforms, says PM

Govt will step up reforms, says PM
The Hindu Business Line, October 31, 2009, Page 21

Pitches for increased investments in physical, social infrastructure.

Our Bureau, New Delhi

The Prime Minister, Dr Manmohan Singh, has said the country needs to aim at sustained economic growth of 9-10 per cent in the coming years.

Speaking at an event here, he said the Government will push for faster reforms and step up the focus on areas such as infrastructure, agriculture and the social sector.

The Government had taken a series of initiatives aimed at investing in rural and urban infrastructure, generating maximum employment and improving productivity of farm economy, Dr Singh said addressing the Hindustan Times Leadership Summit on Friday.

Responding to a query regarding stalled reforms, particularly in labour, insurance and financial sector, he said, “We need to push forward the reforms process in the areas you mentioned and we will do so… We should aim to sustain growth rates of 9-10 per cent per annum… Our primary challenge in the next decade will be to sustain high rates of economic growth, to ensure that the growth process remains equitable, to invest in the education and health of every child and adult, to generate gainful employment.”

Dr Singh pitched for increased investments in physical and social infrastructure, focussing on the need of agriculture and the rural areas. “The fact that our savings rate is 35 per cent suggests that this is a realisable goal,” the Prime Minister said, adding that the challenge for the political leadership at the national and State levels will be to ensure this outcome.

Underlining that the States will have to shoulder the responsibility of the Centre in development, he said, “For each of the initiatives (of the Centre) to be successfully implemented, we need pro-active and creative leadership at the State and district levels.”

Dr Singh said the challenges in nation building were primarily at home, rather than outside, and these are best addressed by ensuring sustained and inclusive growth and development.

Pointing out that the less developed regions of the country are the more populated ones, Dr Singh said this has contributed to persistence of poverty and to the problem of internal migration.