Situation difficult; steps to revive economy on anvil: Pranab

Tags: Economy
Terming the current economic situation as "extremely difficult", President Pranab Mukherjee today expressed the government's commitment to put India back on high growth path, while containing inflation and making tax regime non-adversarial.

"...Putting the Indian economy back on track is paramount for my government. We will work together to usher our economy into high growth path, rein in inflation, reignite the investment cycle, accelerate job creation and restore the confidence of domestic as well as international community in our economy," he said.

The President in his address to the joint sitting of Parliament unveiled the policies and priorities of the BJP - led NDA government which assumed power last month after elections to the 16th Lok Sabha.

The economy, Mukherjee said is "passing through an extremely difficult phase. For the two consecutive years, our GDP growth has been less than 5 per cent. Tax collection has declined. Inflation continues to be an at unacceptable level".

Referring to the high food inflation, he said the new government will give "top most priority" to contain it.

The government, he added, will take effective steps to prevent hoarding and black marketing and reform the public distribution system, incorporating best practices from the states.

The President further said the government is alert about the possibility of a subnormal monsoon this year and is in the process of preparing contingency plan to deal with the situation.

The government, Mukherjee said, will endeavour to "create a policy environment which is predictable, transparent and fair.

"It will embark on rationalisation and simplification of the tax regime to make it non-adversarial and conducive to investment, enterprise and growth," he added.

He said government will move ahead with the rollout of Goods and Services Tax (GST) while addressing the concerns of the states, and undertake more reforms to enhance the ease of doing business.

The President further said that Foreign Direct Investment (FDI) will be encouraged in sectors which "help create jobs and assets".

In order to create jobs, he said, the government will promote labour-intensive manufacturing and endeavour to expand employment opportunities in tourism and agro-based industries.

The government will transform employment exchanges into career centres and also strengthen pension and health insurance safety nets for labour force of all categories, in addition to providing them access to modern financial services, Mukherjee said.

Giving further details of the government's agenda, he said effort will be made to increase public and private investment in the farm infrastructure and convert farming into a profitable venture through scientific practices and agro-technology.

The government "will adopt a national land use policy which will facilitate scientific identification of non- cultivable land and its strategic development", he added.

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