Growth at 9% should not be overlooked, says PM

While conceding that compulsions of coalition politics did not allow the United Progressive Allinace (UPA) government to move as fast on reform as it would have liked to, Prime Minister Manmohan Singh said the growth of the Indian economy at over 9 per cent for the first time was an achievement that should not be overlooked.

In an interview to Financial Times, the PM said India had invested very substantially; that there had been an increase in demand in education, health and in strengthening the social safety net. He held up the employment guarantee programme as one of the most important elements of inclusiveness in economic growth. But the PM added: “It is certainly true that we would have liked to move faster on some elements on economic reforms but politics is the art of the possible”.

Singh also said that the Chinese system of a single party government was an advantage, but if economic reform was more durable in India, it was because India was a democracy.

“India is a functioning democracy committed to the rule of law. Our system is slow to move but I’m confident that once decisions are taken they are going to be far more durable”, Singh said.

Singh held up the history of economic reform in India as an example. “When we launched the reform in 1991, the Financial Times and all other friends used to tell me ‘How will you be sure that these reforms will be carried forward by all successive governments’.

I used to say ‘Don’t judge politicians by what they say but what they do in power’. We’ve seen since 1991 there have been four or five governments in our country and none have dared to reverse the path of reform that we started. I’m confident. Democracy has its problems, it’s slow moving, the decision making process is slow. But once decisions are taken they are far more durable” Singh said.

He was emphatic in his denial when asked if he had felt constrained at any time by the President of the Congress Party Sonia Gandhi.

“I am not constrained by the fact that the Congress party ‘s management is looked after by Mrs Gandhi and I can concentrate on managing the world of the government. It is a distinct advantage” he said.