Prime Minister's Address to the Nation

Prime Minister, Dr. Manmohan Singh addressed the nation on Friday, 21 September 2012. Following is the text of the Prime Minister’s address:

“My dear brothers and sisters,

I am speaking to you tonight to explain the reasons for some important economic policy decisions the government has recently taken. Some political parties have opposed them. You have a right to know the truth about why we have taken these decisions.

No government likes to impose burdens on the common man. Our Government has been voted to office twice to protect the interests of the aam admi.

At the same time, it is the responsibility of the government to defend the national interest, and protect the long term future of our people. This means that we must ensure that the economy grows rapidly, and that this generates enough productive jobs for the youth of our country. Rapid growth is also necessary to raise the revenues we need to finance our programmes in education, health care, housing and rural employment.

The challenge is that we have to do this at a time when the world economy is experiencing great difficulty. The United States and Europe are struggling to deal with an economic slowdown and financial crisis. Even China is slowing down.

We too have been affected, though I believe we have been able to limit the effect of the global crisis.

We are at a point where we can reverse the slowdown in our growth. We need a revival in investor confidence domestically and globally. The decisions we have taken recently are necessary for this purpose.

Let me begin with the rise in diesel prices and the cap on LPG cylinders.

We import almost 80% of our oil, and oil prices in the world market have increased sharply in the past four years. We did not pass on most of this price rise to you, so that we could protect you from hardship to the maximum extent possible.

As a result, the subsidy on petroleum products has grown enormously. It was Rs. 1 lakh 40 thousand crores last year. If we had not acted, it would have been over Rs. 200,000 crores this year.

Where would the money for this have come from? Money does not grow on trees. If we had not acted, it would have meant a higher fiscal deficit, that is, an unsustainable increase in government expenditure vis-a-vis government income. If unchecked, this would lead to a further steep rise in prices and a loss of confidence in our economy. The prices of essential commodities would rise faster. Both domestic as well as foreign investors would be reluctant to invest in our economy. Interest rates would rise. Our companies would not be able to borrow abroad. Unemployment would increase.

The last time we faced this problem was in 1991. Nobody was willing to lend us even small amounts of money then. We came out of that crisis by taking strong, resolute steps. You can see the positive results of those steps. We are not in that situation today, but we must act before people lose confidence in our economy.

I know what happened in 1991 and I would be failing in my duty as Prime Minister of this great country if I did not take strong preventive action.

The world is not kind to those who do not tackle their own problems. Many European countries are in this position today. They cannot pay their bills and are looking to others for help. They are having to cut wages or pensions to satisfy potential lenders.

I am determined to see that India will not be pushed into that situation. But I can succeed only if I can persuade you to understand why we had to act.

We raised the price of diesel by just Rs. 5 per litre instead of the Rs 17 that was needed to cut all losses on diesel. Much of diesel is used by big cars and SUVs owned by the rich and by factories and businesses. Should government run large fiscal deficits to subsidise them?

We reduced taxes on petrol by Rs. 5 per litre to prevent a rise in petrol prices. We did this so that the crores of middle class people who drive scooters and motorcycles are not hit further.

On LPG, we put a cap of 6 subsidised cylinders per year. Almost half of our people, who need our help the most, actually use only 6 cylinders or less. We have ensured they are not affected. Others will still get 6 subsidised cylinders, but they must pay a higher price for more.

We did not touch the price of kerosene which is consumed by the poor.

My Dear Brothers and Sisters,

You should know that even after the price increase, the prices of diesel and LPG in India are lower than those in Bangladesh, Nepal, Sri Lanka and Pakistan.

The total subsidy on petroleum products will still be Rs. 160 thousand crores. This is more than what we spend on Health and Education together. We held back from raising prices further because I hoped that oil prices would decline.

Let me now turn to the decision to allow foreign investment in retail trade. Some think it will hurt small traders. This is not true.

Organised, modern retailing is already present in our country and is growing. All our major cities have large retail chains. Our national capital, Delhi, has many new shopping centres. But it has also seen a three-fold increase in small shops in recent years.

In a growing economy, there is enough space for big and small to grow. The fear that small retailers will be wiped out is completely baseless.

We should also remember that the opening of organised retail to foreign investment will benefit our farmers. According to the regulations we have introduced, those who bring FDI have to invest 50% of their money in building new warehouses, cold-storages, and modern transport systems. This will help to ensure that a third of our fruits and vegetables, which at present are wasted because of storage and transit losses, actually reach the consumer. Wastage will go down; prices paid to farmers will go up; and prices paid by consumers will go down.

The growth of organised retail trade will also create millions of good quality new jobs.

We recognise that some political parties are opposed to this step. That is why State governments have been allowed to decide whether foreign investment in retail can come into their state. But one state should not stop another state from seeking a better life for its farmers, for its youth and for its consumers.

In 1991, when we opened India to foreign investment in manufacturing, many were worried. But today, Indian companies are competing effectively both at home and abroad, and they are investing around the world. More importantly, foreign companies are creating jobs for our youth -- in Information Technology, in steel, and in the auto industry. I am sure this will happen in retail trade as well.

My Dear Brothers and Sisters,

The UPA Government is the government of the aam aadmi.

In the past 8 years our economy has grown at a record annual rate of 8.2 per cent. We have ensured that poverty has declined much faster, agriculture has grown faster, and rural consumption per person has also grown faster.

We need to do more, and we will do more. But to achieve inclusiveness we need more growth. And we must avoid high fiscal deficits which cause a loss of confidence in our economy.

I promise you that I will do what everything necessary to put our country back on the path of high and inclusive growth. But I need your support. Please do not be misled by those who want to confuse you by spreading fear and false information. The same tactics were adopted in 1991. They did not succeed then. They will not succeed now. I have full faith in the wisdom of the people of India.

We have much to do to protect the interests of our nation, and we must do it now. At times, we need to say "No" to the easy option and say "Yes" to the more difficult one. This happens to be one such occasion. The time has come for hard decisions. For this I need your trust, your understanding, and your cooperation.

As Prime Minister of this great country, I ask each one of you to strengthen my hands so that we can take our country forward and build a better and more prosperous future for ourselves and for the generations to come.

Jai Hind.”

You Should Vote!

With the announcement of the general election 2009, the one thing that everyone is thinking is should they vote. The citizens of this country should know this fact that they are lucky that have been born here. There are millions of people in other countries who die to vote. India is a democratic country and it has given every citizen who is above the age of 18 years and is registered to the election commission office the right to vote. A government by the people, for the people cannot work without the people. The only way democracy can work is if citizens, young and old, are active participants.

It’s very easy to say that one vote does not make a difference. But, the reality is that every vote counts. A single vote may not be valuable but when that single vote is combined with the votes of the others who share the same views, it can become a voice; more the votes louder the voice. You just can’t complain about government decisions if you don’t vote. It’s like saying I don’t care. Remember that casting a vote allows an individual to express a choice among the candidates who wish to become government leaders. Though, one may complain that all the candidates are corrupt and you don’t support any of them. That’s ridiculous. It is true that today’s politicians are corrupt, or they are not liked by the youth, but, ultimately, leaders for running the government would be selected from among these. So, it is better to chose among these corrupt candidates rather than not to vote. By not voting you are loosing your voice to express.

As a good citizen, everyone should vote. This sets an example to others who don’t vote or don’t want to vote. Children and juniors often observe how their seniors behave to certain circumstances and they follow them. So, it is better to set good examples. Civic awareness is an important part of their training. Although, voting may consume your time, it can be hectic during summer, but, it is not a waste. Therefore, don’t forget to visit your nearest polling booth and cast your vote and show that you care for this country.

The Real Joker

Pakistan is a failed state. No one needs to prove this. The fact that a joker rules it is enough to conclude that the future of Pakistan is in bad hands. After the recent Mumbai attacks by the terrorists from Pakistan, fingers have been pointed at Pakistan, as the lone captured terrorist, Ajmal Amir Kasab, has told the police that he hails from Pakistan and had undergone trainings at Lashkar-e-Tayyeba's camps. If we turn the pages of history we would find that it not a new thing. Pakistan have never supported India's views that terrorists still exists in Pakistan Occupied Kashmir (PoK) and they had been receiving aids from their Intelleigence Services, ISI. 

Earlier, there were leaders in Pakistan that had strong belief in what they were saying, though, most of the times they were wrong. But, the views that are emerging from Pakistan after the Mumbai attack shows that Pakistani President, Asif Ali Zardari is a joker. He should be in a circus rather ruling the disturbed Pakistan. I can now reason why her wife Mrs. Bhutto was more powerful than him during her days of rule in Pakistan. Here is a man who claims to have graduated from a college in London which did not exist. And look at today, he is demanding evidence. Lets have a glance on his views on different days after the Mumbai blasts.  
November 29: He said that he would act swiftly if given any evidence of involvement by Pakistani groups or individuals in the 26/11 attack.
He later acknowledged that 26/11 perpetrators could be “non-state” actors from Pakistan. 

December 3: “We have not been given any tangible proof to say that he is definitely a Pakistani. I very doubt that he (Kasab) is a Pakistani”

On December 7, the British Daily, The Observer reported that it had establish that Kasab came from Faridkot village in Pakistan.

On December 12, Pak's Dawn newspaper traced Kasab's father in Faridkot. 

December 17: He said that there was still no proof that the gunmen who attacked Mumbai came from Pakistan. 

On December 19, former premier of Pakistan Nawaz Sharif had said that Kasab is a Pakistani. “It has been said this individual named Ajmal Kasab hails from Faridkot,” Shariff told Geo News. “I got this checked. The village and its surroundings were cordoned off. His parents are not being allowed to meet anyone.” His father has already identified his son through pictures that had been flashed in the media.  

Earlier, Mr. Zardari had even agreed to send the ISI chief to India to help Indian officials in the probe. But, later he denied of having said that. Moreover, the founder of the group Jaish-e-Mohammed chief who was earlier reported to be under house arrest was a fake attempt to fool the world. Different officials in Pakistan say different things. One day they say Masood Azhar is under house arrest and on the other day they say they don't have any idea of his whereabouts. What message does Pakistan want to convey to India and other world communities? Is is not enough now! Will someone show the door to this joker because even in a circus a joker cannot continue to act beyond his time. He has to make room for others to continue. Its time up Mr. Joker.