As government prepares to unveil some measures to revive the economy, Prime Minister Manmohan Singh says India cannot expect “outside help” on a scale which can see the country through its difficulties.
“We have to raise our economy through our own good steps,” Dr. Singh told reporters accompanying him on board his special aircraft late Saturday while returning home after a eight-day foreign tour.
Fresh from attending the G20 Summit in Mexico and the Rio+20 Summit in Brazil, Dr. Singh said the events of the last couple of days convinced him more than ever before that there are no international solutions to the problems of a country of India’s size.
“We must plan our economy in such a manner that we cannot expect outside help on a scale which can see us through our difficulties,” he said.
The government is likely to announce some measures on Monday to shore up confidence in the financial markets and revive the economy before Finance Minister Pranab Mukherjee demits office to contest the Presidential elections as the United Progressive Alliance nominee.
Dr. Singh promised that problems with regard to the fiscal management will be tackled effectively and credibly.
“There are problems with regard to management of the balance of payments deficit on the current account. Those problems also we will tackle. It will not be proper for me to talk about these things in detail, but, you have my assurance that I recognise that we have to work our way to restore the momentum of growth that India needs and which the people of India want the Government of India to work for,” he said.
Dr. Singh that India will have to work harder than ever before in restoring fiscal balance.
“We have to work systematically to ensure that the balance of payment problem is managed properly and the climate for foreign investment, both direct and portfolio is also favourably motivated.
“We owe it to our country to take all the necessary decisions which would return the country to a high growth path. There are problems with regard to the fiscal management. We will tackle that problem effectively and credibly.”
Noting that India was a semi federal polity, Dr. Singh said cooperative federalism made it incumbent on all political parties, those ruling at the Centre and those ruling in States, to work together to find credible ways and means to get this country moving again on to the high growth path which it had achieved until 2011-12.
Dr. Singh also said a lot of things which are not going right, they have their origins outside India. At the same time, he admitted that there have been problems in our own country.
“The 2008 financial crisis affected our growth rate. Our growth rate fell from 9 per cent to 6.7 per cent and we recovered in next two years but then came the Euro zone crisis and therefore there is a flight of capital from large number of developing countries,” he said.
“Capital in search of safety wants to go to Germany, wants to go to the United States and therefore all developing countries, including China, are experiencing a deceleration of growth rates,” he added.
Keywords: Prime Minister Manmohan Singh, G20, Rio+20, economic slowdown
Corruption is the real killer that India and Indians need to send to the gallows. That will take care of the economic, political and ideological complex that India is in one stroke. Refuse to break laws. Refuse to work if your tax money is going to fund excesses of our local politicians. Bring the pressure of work to rule on local governance. Our economy is actually resilient enough to fund the entire EU and US out of its crisis may be that is why our hard earned savings are being depreciated by domestic and external factors. India does not suffer a brain drain today - there is no dirth of talent. But it surely suffers from a top heavy approach to solving stability issues of our currency as well as economy.
So the govt can give billions of dollars as 'aid' to African countries like Mali, Bangladesh and Afghanistan but its PM and its govt are clueless as to how to alleviate the financial problems of India? And we are expected to repose our trust in these scamsters?
India's only hope lies it voting out Congress party in the next Lok Sabha elections
Outside help!!! has already shown its nails
Poddatur above has stated the problem exactly right. I'm an NRI from IIT Madras and have lived in the U.S for 30 years. Each time I come to India (every two years since 1981) I find that the prices have gone up by a LOT more than the official inflation rate. India is awash with rupees which are losing value every day. In the U.S. salaries have doubled in the past 30 years. An average engineer out of college made about $25,000 in 1981 and now they make about $50,000. Productivity in the U.S. has also doubled in the past 30 years because of improvements in technology. In India salaries have gone up more then 20 times in the past 30 years, but productivity has not gone by 20 times. It has probably gone up by about 5 times. Therefore most Indians are vastly overpaid compared to what they produce.
Mr.Prime Minister it is true No body needed from outside to improve our economy. First take stern action against those who did mega corruption. Those who did corruption now all our outside. How you can check corruption? Corruption is like cancer in the society and economy. Agriculture sector is completely neglected. More importance is given to the service sector. Manufacturing sector is very weak. It is not sufficient to look only the big Corporates in the growth. Many medium size companies are struggling with power infrastructure. Labor shortage is much in the agriculture sector. Free rice and government job scheme makes the situation worse. This bad practice is to be corrected. Simply giving subsidy in agriculture is not sufficient. We have to monitor whether it is utilized in effective manner. Create independent bodies to guide and control. There should not be any political interference. Deed is needed and not the words. In the murky political situation arr you able to do?
Have you observed how our PM gets to open his mouth only onboard a flight ?
Manmohan Singh is as corrupt as everyone around him. Unless he is blind, deaf and stupid (and I think he is only one of these), he should be quite aware of the corruption all around him. He is unwilling to stop any of it. That makes him a just as corrupt.
Let us see what this Government announces tomorrow. Corruption and Inflation need to be addressed effectively and quickly if this country has any hope of moving forward.
It is indeed pathetic to observe that our PM though a renounced economist is either blissfully unaware of the ground realities or turns a blind eye to the miserable conditions the country is facing. In either case there is no valid reason for him to pledge a huge sum of 10 billion for the Euro Fund when our Khazana is literally empty. The first and foremost duty of any Government worth the name would have been to bring back the huge sum of black money slashed abroad by our human predators some whom are occupying the seats of power and no serious attempt worth the name has so far been taken. We have a Finance Minister who successfully managed to dodge the issue by taking shelter under some monetary Agreements with Switzerland a safe haven for black money and the White Paper that was issued contained nothing worthwhile only fit to be consigned to the WPB. The Aam Admi need not have the slightest hope of any relief in the next two years under the present dispensation.
No country can have so high an inertia to do good to its own people than ours. More than 60 years have past and we are reaching new horizons of corruption, new landmarks on improving collection of taxes, duties and funds but nothing is done to improve the country. We have all the superlatives in diseases, poverty, pollution, corruption, black money, smuggling, food wastage, poor infrastructure, bad roads and transport facilities and the list goes on endlessly. We spend a lot on defense but the equipments are sub standard, we produce a lot of food but we let it rot in the open, we have the best manpower young, energetic and talented but we do not know how to utilize them. What we lack is a demanding, nationalistic people who can tolerate no nonsense from a group of buffoons called politicians and would not treat every corrupt politician with the same disdain as a serial killer.
No nation was ever build by foreign help, only citizen of a country can take a country ahead. But, question is whether this govt. has policies & will to facilitate this?
External Help? No. Internal Theft? Continue. MM Singh, you can't make the Indian People, the fools. Step down and vacate the seat, now!
Mr.Singh the PM of INDIA summed it up succinctly.While our Pundits Know the Fiscal&financial problems of INDIA&its external&internal causes It is still not clear whether they have the mental tenacity to find&EXECUTE INDIAN MADE SOLUTION.While it is clear that WE CAN like we have in defense&food security we are not still clear that we have RESOLVED to resolve this problem to take us to that GLOBAL HEIGHTS.
It is good realization that India is going to have to solve its problem by its own efforts. So start will controlling runway inflation. All government polcy in states and Federal level should be gear to reducing inflations. There is going to be huge saving from these efforts. Start with the concept of 'Excess Profits Tax'. Businesses will not go through lots of troubles to collect excesssive profits, if they know for sure that they have to get them back. Key will be work or put fair amount of tax on Commodity Traders who are causing unusual raises in Commodity prices which are being blamed for Inflations. India is going have to cut down abuses in big contacts Overcharging/costs overruns have to be wiped out through tight monitoring of projects. India will be able to do it if India people feel that policies are fair and equitble. India need determined Leadership and focus goals. Blaming Democracy, blaming others will not do. Control Inlfation-and contol contract abuses, You will find.
Mr. Prime Minister, You do not have any right or authority to pledge a huge sum of US $ 10 billion on behalf of India for the Euro Fund at a time when India is facing a serious economic crisis. Please see the writing on the wall and withdraw the pledge forthwith. Please do not erode the economy of the country by uttering something that cannot be given just like that. You are not authorised to do so. If at all you wanted to do this, you should have taken the Parliament into confidence and sought its approval. Indians are not so rich and magnanimous to donate such a huge sum.
In this highly globalised scenario, does Mr PM makes sense in what is he saying?
It is not as easy to contain parallel economy as one thinks as has been rightly said by the Prime Minister. A large chunk of the black money is stashed away in safe havens abroad. So, bringing back the black money stashed away in the banking havens abroad ism ore difficult. The super Rich Indians, who have stashed away their money abroad and enjoy all the rights and privileges as Indian Citizens, should introspect and bring back the black money to the country. However, a major share of such money stashed abroad in safe havens must be tainted money amassed through corrupt means. They also must have escaped the clutches of the Income Tax authorities. Therefore, such money has not only the stigma of being stained money but also illegal in the eyes of law whatever the legal position may be in the international laws. Only if we succeed in bringing back the black money stashed abroad, we can at lease bring a modicum of change in the situation.
No outside help is required to improve India. India needs to eradicate corruption that takes away lot of wealth that can be used for the improvement of the nation. The weak, appointed and not elected PM Dr. Singh could not do it and say something like Krishna who read another nation's speech at the UN. Shame!
PM always says the Gist but he never Completes the Story or in otherwords the results are not visible for the Country, the Country's growth is taking a deep dive into an open sea. effective Leadership is Expected from the Prime Minister.To Boost the Growth we need for now the FDI in all states which will really help the Farmers(where the middle Men issue will be resolved). Farmers will be Prosperous in every State. Good Infrastructure will be Built across. There by Generating Employment Oppurtunites to the Poor or Working Class. We need to take Some Step and I sincerely Beg of the Politicians who are sitting in the Parliament and i also appeal to them Please Stop Power Based Politics. It is the High time, all the FII's are taking their Investments out because of Mr.Mukerjee's Great Retrospective Amendment, What Crisis is My Country in!!
India does not need and should not ask for any outside help OR allow any interference in India by outside power/s. However, the scenerio is completely different under Manmohan 'Raj' where the Gang has virtually mortgaged the nation to The Foreign Power which controlls and dictates everything in India and on billion Indian citizens from Education Policy to Foreign Policy to Social Policy to Defense Policy to Security Policy to Finance and Economic Policy. The greater misfortune of the nation is even the media is supressing legitimate and truthful comments which exposes the TRTUH. Look at China, today it reached the height in SPACE as well. Does China asks or need any help from outside. NO. So why India?
The statement from prime minister is extremely illogical and baseless and there are many loop holes in his own statement, being as such high level economists he realized the base thins so late that a fdi of 2to 5% size to our total revenue collection could not make big change , its the policy of government, secondly after economic crisis of 2008 what his govt has done did they were still in wait for second crisis. The policies incorporated in this country are basically to make happy his european friends, when there are surplus chances to make over our economy by just reducing wastage of food in FCI godowns, the steel bars loss every year in terms of 100 crores in railways... policy are not at of any concern for poors and middle class ..but just to please big firms..
Capital will flow where trust is maximum. Trust is built where rules are stable and fundamental. The reason capital decides to flow to Germany and USA is not because they have better entrepreneurial abilities, but because they have laws in place which cannot be wished away by the next party in power. We have to soundly tackle Kashmir, and keep Pakistan out of our lives. We have to disempower our politicians and empower our citizens. We don't need elections speeches or promises. The vote can only go so far. We need decision making at the local level. If a local sewerage does not work, the locals must know what to do and should be in a position to do it. I find Manmohan's assurances a little too late in the day. Words are useless. It will take enormous guts.
Hi Mr P.M. I have great faith in your probity and in your capacity in handling Economic crisis like we Indian facing now. But What I have complain about you is lack of guts in taking hard steps like we had taken in 1991-92. Our Forex reserve is siphoning, Aam Adami, even after doing full day hard work, is unable to give justifiable diet to its dependence, corruption have been absolute reality, justice to Amm Adami have become distant dream. Over all we are breathing somehow just to keep ourselves alive. Mr. PM, give that what this country is in desperate need. Instead of voicing from a safe zone, come out from the Aircraft and listen the voice of the least element of this country.
Dr. Singh, this is the humble request to you, to do the needful to stop taking outside help for economic stability.
We do not want a PM who give false hope or just talks, we want a PM who can work and show the result. Rupee is falling so badly and Mr. PM is admitting that there are problems, why has he made such problems? We want our money stashed in Swiss owned by his Italian mistress and other politicians. He is just a puppet who is remote controlled by Italian Mistress. We want freedom, we do not seek any help from outside and please do make such statement which degrades our country.
Yes India cannot outside help but India can help others by donating 10 Billion USD for others . worst P M , All out to kill Indian Economy soon. This time India will suffer terribly for next 10 to 20 years like Japan.
FDI is depended on economy and exports but effected due to low productivity and inflation in our country. The control in salaries is totally failed comparing with countries like Canada and US,15 years back the salary of an IAS or corporate MD was about 10,000/- per month and today it is increased to 10 times in government sector and no limit in private sector which is nonsense. Like wise today 1.0 crore is nothing in India but $200000 is a big money in US. India is not grown on equivalent to US. Our economists have to think a lot about this and take corrective measures why our rupee is not having value. To buy a house in India is costlier than any where in the world , even in our district headquarters to buy a house we have to spend about $75000 where there is no infrastructure like water, roads and power. Still prices are growing in India along with salaries, labor wages etc., along with other commodities too but overall production is very low. Left hand side = Right hand side AS PER MATHS. That means we are decreasing the rupee value in our own country and making difficult to NRI and FII's.
Has India noticed this, PM only speaks at Conferences outside the country or when he is in Mid Air, but not when he is India. It is as if he gains some freedom when he is away, probably free from some strings.
Mr PM, we are not asking for outside help but for the money stashed in foreign Banks, which is the money your cohorts have made in the name of public development, through PDS, Health schemes and schemes galore whereby only you and your Babus can screen, and it is the money of the People so we deserve to demand to bring back the black money .....
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