With barely 18 months to go for the general elections, Prime Minister Manmohan Singh asked ministers to be watchful of the drags on the economy and infrastructure growth. These, the PM said, are “fuel supply arrangements, security and environmental clearances and financing difficulties”.
This was the PM’s oblique response to Environment Minister Jayanthi Natarajan’s recent rebellion on the proposed creation of the National Investment Board (NIB) and her fears that environmental concerns would fall by the wayside.
The world is going through hard times, he said, adding that India could not be untouched by global developments. Growth had decelerated, exports had fallen and fiscal deficit was growing, Singh said.
“Of particular concern is the fiscal deficit, which is too high and acts as a deterrent for domestic and foreign investment. These issues have a rippling effect across the economy and on the work of many departments that are represented here,” he said.
“I am aware that we are working against the political calendar, but we should not lose sight of the fact that we are also involved in the task of nation-building. Our responsibilities and our commitment therefore need to transcend other considerations,” said Singh, presumably referring to political differences not just with the Trinamool Congress on several policy issues, but also internal dissent in the Congress on them.
Singh stressed, both in his speech and separately later, that younger ministers should be given more work and be made to feel a part of the policy process.
Finance minister P Chidambaram, Parliamentary Affairs minister Kamal Nath and Agriculture Minister Sharad Pawar also spoke.
Chidambaram said "quick decisions" needed to be taken, adding that major decisions cannot be kept in abeyance. His response on the PM’s fiscal deficit observation was that the government needed money and disinvestment would be one route the government would tap. This should not be construed as selling the family silver.
"If major ministries like Coal, Power, Roads and Steel grow only at 2 to 3 %, how can the economy grow at 7 to 8%" Chidambaram asked. He emphasised faster land acquisition, “without bypassing rules”.
Explaining the FDI in retail decision, with naysayers like Defence Minister AK Antony present, Chidambaram said, "FDI is not an option, it is an imperative for the economy."
He illustrated his point with an example of coconut farmers in Kerala. “A coconut in Kerala or Tamil Nadu costs about 3 to 4 rupees at farmgate but by the time it reaches the market it costs Rs 20”, he said. The same, he said, was the case with potato in West Bengal. This example was directed at absent former colleague Mamata Banerjee. FDI will improve supply chains and curb inflation, benefitting farmers in both West Bengal and Kerala, he said.
Kamal Nath urged ministers especially new ones, to attend Parliament, stay during the proceedings and facilitate MPs to work better.
Pawar spoke last and said that Ministers of State and junior ministers need to be present at meetings of their respective ministries so that they become “adept with the functioning of the ministry”.
