The Union Cabinet has approved the proposal to move official amendments to the Forwards Contracts (Regulation) Amendment Bill, 2010 (the Bill, 2010), based upon the recommendations of the Parliamentary Standing Committee of the Ministry of Consumer Affairs, Food & Public Distribution in its 15th Report, in the next session of Parliament.
After the Bill is passed and enacted by Parliament, Forward Market Commission (FMC) as a regulator will get autonomy and power to regulate the market effectively. New products like `options` will be allowed in the commodity market. This will benefit various stakeholders including farmers to take benefit of `price discovery and `price risk management`. The Bill would enhance public accountability of the Regulator by providing for an Appellate Authority.
The recommendations of the Committee with regard to definition of the "Commodity Derivative" in Clause 3, establishment and constitution of Forward Markets Commission in Clause 4, term of office of the Chairman and every other whole time members in Clause 5, accounts and audit in Clause 9, penalties for contravention of certain provisions of Chapter IV in Clause 25 of the Bill, 2010 have been accepted and are proposed to be incorporated as official amendments. The amendment in Clause 25 will require consequential amendment in Clause 26, which is also proposed to be included in the official amendments.
Background:
The Forward Contracts (Regulation) Act provides for the regulation of commodity futures markets in India and the establishment of the Forward Markets Commission (FMC). While the markets have been liberalized with effect from April, 2003 and modern institutional structures are in the process of being evolved, yet the market regulator, FMC is largely functioning in its traditional format.
Many of the existing provisions of the Forward Contracts (Regulation) Act need changes to strengthen and reinforce legal provisions to meet the requirements of changing environment. In order to amend further the Forward Contracts(Regulation) Act, the Bill, 2010 was introduced in the Lok Sabha on 6.12.2010. The Bill, 2010 went through examination by the Committee which submitted its 15th Report on 22nd December, 2011.
October 6, 2012
October 2, 2012
Indian Rice Exports Eased Global Prices
Agriculture Minister, Shri Sharad Pawar yesterday sought to highlight India’s role in stabilising global food supplies and moderating price rise.
The Minister was addressing the meeting of the ‘High Level Regional Consultation on Policies to Respond to High Food Prices in Asia and the Pacific Region’ organized by FAO at Bangkok.
From an importing nation India has now become a nation that exports wheat and rice, the Agriculture Minister said. “I am glad to inform that our efforts are showing excellent outcomes. From having to import about 6.5 million tonne of wheat in 2006 and 2007 we are now not only meeting the domestic demand but have also begun contributing to global supply through exports. Similarly, in case of rice, we faced problems in 2009 as our buffer stocks kept for supplies under public distribution system had dipped due to inadequate production. In the past twelve months, however, due to record production over the years, we have already exported about 8 million tonne of rice. The exports from India has not only stabilized the global supplies but have helped in easing the ruling high prices to affordable levels.”
Stating that increasing agricultural production and diversifying the production base has become the need of the hour, he said, “India has been following since 2007 the strategy of agricultural development by widening the production base and focusing attention to high potential low producing areas through intensive promotion of technologies in order to bridge the yield gaps.”
Laying stress on the global food economy in domestic context he went on to state “In order to better understand the global food economy in domestic context we in India have initiated a study project on developing Agricultural Outlook where situation analysis and forecasts are prepared periodically for the short and the medium terms. We are grateful to FAO for supporting this initiative with technical assistance on international exposure and capacity building. We believe that informed decisions based on sound analysis help develop better understanding of food situation internationally and locally.”
Informing the various international organizations and policy experts gathered at the consultation meeting he informed: “India is actively involved in the evolution of these mechanisms, for shaping the information system for a sound real time analysis of the developing situation on supply, stocks, trade, demand and prices of food grains in different parts of the world. We believe that credible information generated by the system would be a valuable input for any policy initiative at the country level should any of the supply, price or trade shocks cause disruption in food availability. Better information is the key to being better prepared.”
He further said, “South Asian Countries have started a SAARC Food Bank to service the needs of the member countries in case of any supply shock as a result of calamities or otherwise. There is need to strengthen such regional cooperation instruments to respond to the developing global food crisis. It is our collective responsibility to reach out to those vulnerable populations whose access to food is compromised due to high food prices.”
The Minister was addressing the meeting of the ‘High Level Regional Consultation on Policies to Respond to High Food Prices in Asia and the Pacific Region’ organized by FAO at Bangkok.
From an importing nation India has now become a nation that exports wheat and rice, the Agriculture Minister said. “I am glad to inform that our efforts are showing excellent outcomes. From having to import about 6.5 million tonne of wheat in 2006 and 2007 we are now not only meeting the domestic demand but have also begun contributing to global supply through exports. Similarly, in case of rice, we faced problems in 2009 as our buffer stocks kept for supplies under public distribution system had dipped due to inadequate production. In the past twelve months, however, due to record production over the years, we have already exported about 8 million tonne of rice. The exports from India has not only stabilized the global supplies but have helped in easing the ruling high prices to affordable levels.”
Stating that increasing agricultural production and diversifying the production base has become the need of the hour, he said, “India has been following since 2007 the strategy of agricultural development by widening the production base and focusing attention to high potential low producing areas through intensive promotion of technologies in order to bridge the yield gaps.”
Laying stress on the global food economy in domestic context he went on to state “In order to better understand the global food economy in domestic context we in India have initiated a study project on developing Agricultural Outlook where situation analysis and forecasts are prepared periodically for the short and the medium terms. We are grateful to FAO for supporting this initiative with technical assistance on international exposure and capacity building. We believe that informed decisions based on sound analysis help develop better understanding of food situation internationally and locally.”
Informing the various international organizations and policy experts gathered at the consultation meeting he informed: “India is actively involved in the evolution of these mechanisms, for shaping the information system for a sound real time analysis of the developing situation on supply, stocks, trade, demand and prices of food grains in different parts of the world. We believe that credible information generated by the system would be a valuable input for any policy initiative at the country level should any of the supply, price or trade shocks cause disruption in food availability. Better information is the key to being better prepared.”
He further said, “South Asian Countries have started a SAARC Food Bank to service the needs of the member countries in case of any supply shock as a result of calamities or otherwise. There is need to strengthen such regional cooperation instruments to respond to the developing global food crisis. It is our collective responsibility to reach out to those vulnerable populations whose access to food is compromised due to high food prices.”
September 30, 2012
CACP favours MSP hike for rabi pulses, oilseeds
The Commission for Agricultural Costs and Prices (CACP) has recommended to the Government a hike in minimum support price for winter-sown pulses and oilseeds by up to Rs 500 a quintal.
The Agriculture Ministry will move a Cabinet note on this after seeking comments from the ministries concerned and the state governments.
A senior government official said the CACP has not recommended raising the minimum support price (MSP) of wheat and barley for the 2013-14 rabi marketing season (April-March) in view of excess supply in the country following record production last year.
It suggested keeping the MSP of wheat and barley unchanged at Rs 1,285 per quintal and Rs 980 per quintal, respectively.
The Commission has recommended no increase in wheat MSP because the wholesale prices of the grain are currently ruling below support price at Rs 1,160 per quintal.
But the production cost was around Rs 1,066 per quintal in 2012-13. A similar trend was seen in barley, the official said.
“However, the CACP has suggested the Government to announce 10 per cent bonus to wheat and barley farmers if exports are banned next year,” the official said.
To boost the production of pulses and oilseeds, the CACP has proposed increase in the MSP of gram by Rs 200 to Rs 3,000 a quintal and masur dal by Rs 100 to Rs 2,900 a quintal for 2012-13 rabi season.
Similarly for oilseeds, the Commission has recommended increase in the support price of mustard seed by Rs 500 to Rs 3,000 a quintal and safflower by Rs 300 to Rs 2,800 per quintal.
The reasons given were that the cost of production of pulses and oilseeds has increased substantially over the last few years and the increase in support price will encourage farmers to grow these crops, the official said.
While sowing in rabi (winter) season starts from October, the harvesting of crops is undertaken during April-March.
The Government aims to achieve foodgrains production of 130 million tonnes during the 2012-13 rabi season. Of this, 86 mt would be wheat, 12.5 mt of pulses, and 15 mt of rice.
Source: Hindubusinessline
The Agriculture Ministry will move a Cabinet note on this after seeking comments from the ministries concerned and the state governments.
A senior government official said the CACP has not recommended raising the minimum support price (MSP) of wheat and barley for the 2013-14 rabi marketing season (April-March) in view of excess supply in the country following record production last year.
It suggested keeping the MSP of wheat and barley unchanged at Rs 1,285 per quintal and Rs 980 per quintal, respectively.
The Commission has recommended no increase in wheat MSP because the wholesale prices of the grain are currently ruling below support price at Rs 1,160 per quintal.
But the production cost was around Rs 1,066 per quintal in 2012-13. A similar trend was seen in barley, the official said.
“However, the CACP has suggested the Government to announce 10 per cent bonus to wheat and barley farmers if exports are banned next year,” the official said.
To boost the production of pulses and oilseeds, the CACP has proposed increase in the MSP of gram by Rs 200 to Rs 3,000 a quintal and masur dal by Rs 100 to Rs 2,900 a quintal for 2012-13 rabi season.
Similarly for oilseeds, the Commission has recommended increase in the support price of mustard seed by Rs 500 to Rs 3,000 a quintal and safflower by Rs 300 to Rs 2,800 per quintal.
The reasons given were that the cost of production of pulses and oilseeds has increased substantially over the last few years and the increase in support price will encourage farmers to grow these crops, the official said.
While sowing in rabi (winter) season starts from October, the harvesting of crops is undertaken during April-March.
The Government aims to achieve foodgrains production of 130 million tonnes during the 2012-13 rabi season. Of this, 86 mt would be wheat, 12.5 mt of pulses, and 15 mt of rice.
Source: Hindubusinessline
September 24, 2012
117.18 MT Food grain Production Estimated in the Kharif Season
As per the First Advance Estimates of production of Kharif crops, 117.18 million tonnes (MT) food grains is likely to be produced in the current season.
These production estimates are higher than the average of the first advance estimates of the last five years (113 MT). Final estimates are generally 5 to 10% higher than the first estimates. Even as compared to the average of final estimates (118.86 MT), the current estimates are lower by 1.68 million tonnes or about 1.4% despite deficient and late rains this year.
These estimates were released by Agriculture Minister, Sharad Pawar today. Speaking on the occasion, the Minister said, the estimates were higher than expectations considering the truant monsoon rains.
The assessment of production of different crops is based on the feedback received from States and validated with information available from other sources.
The estimated production of major crops during Kharif 2012-13 is as under:
Food grains ‒ 117.18 million tonnes
Rice ‒ 85.59 million tonnes
Coarse Cereals ‒ 26.33 million tonnes
Maize ‒ 14.89 million tonnes
Pulses ‒ 5.26 million tonnes
Tur ‒ 2.78 million tonnes
Urad ‒ 1.14 million tonnes
Oilseeds ‒ 18.78 million tonnes
Soyabean ‒ 12.62 million tonnes
Groundnut ‒ 3.82 million tonnes
Castorseed ‒ 1.40 million tonnes
Cotton ‒ 33.40 million bales (of 170 kg each)
Sugarcane ‒ 335.33 million tonnes
As per 1st advance estimates, production of Rice estimated at 85.59 million tonnes, though lower as compared to last year’s record Kharif production, is higher than the average production of 83.17 million tonnes.
The estimated production of Coarse Cereals, is however, lower than average production by 3.65 million tonnes mainly on account of loss in area coverage under Bajra and Maize in the States of Gujarat, Haryana, Maharashtra, Karnataka and Rajasthan.
The estimated production of Kharif Pulses is also lower than the average production by 0.45 million tonnes mainly due to shortfall in Moong and other Kharif Pulses.
Though there is a significant increase in estimated production of soya bean, yet due to decline in the production of Groundnut, total production of Kharif Oilseeds estimated at 18.78 million tonnes is lower than the average production by 0.61 million tonnes.
The current year’s production of Sugarcane estimated at 335.33 million tonnes is higher by 10.22 million tonnes as compared to average production.
The estimated production of Cotton at 33.40 million bales (of 170 kg each) has registered an increase of 5.32 million bales as compared to average cotton production of 28.08 million bales. Production of Jute is also estimated to be marginally higher than the average production.
These production estimates are higher than the average of the first advance estimates of the last five years (113 MT). Final estimates are generally 5 to 10% higher than the first estimates. Even as compared to the average of final estimates (118.86 MT), the current estimates are lower by 1.68 million tonnes or about 1.4% despite deficient and late rains this year.
These estimates were released by Agriculture Minister, Sharad Pawar today. Speaking on the occasion, the Minister said, the estimates were higher than expectations considering the truant monsoon rains.
The assessment of production of different crops is based on the feedback received from States and validated with information available from other sources.
The estimated production of major crops during Kharif 2012-13 is as under:
Food grains ‒ 117.18 million tonnes
Rice ‒ 85.59 million tonnes
Coarse Cereals ‒ 26.33 million tonnes
Maize ‒ 14.89 million tonnes
Pulses ‒ 5.26 million tonnes
Tur ‒ 2.78 million tonnes
Urad ‒ 1.14 million tonnes
Oilseeds ‒ 18.78 million tonnes
Soyabean ‒ 12.62 million tonnes
Groundnut ‒ 3.82 million tonnes
Castorseed ‒ 1.40 million tonnes
Cotton ‒ 33.40 million bales (of 170 kg each)
Sugarcane ‒ 335.33 million tonnes
As per 1st advance estimates, production of Rice estimated at 85.59 million tonnes, though lower as compared to last year’s record Kharif production, is higher than the average production of 83.17 million tonnes.
The estimated production of Coarse Cereals, is however, lower than average production by 3.65 million tonnes mainly on account of loss in area coverage under Bajra and Maize in the States of Gujarat, Haryana, Maharashtra, Karnataka and Rajasthan.
The estimated production of Kharif Pulses is also lower than the average production by 0.45 million tonnes mainly due to shortfall in Moong and other Kharif Pulses.
Though there is a significant increase in estimated production of soya bean, yet due to decline in the production of Groundnut, total production of Kharif Oilseeds estimated at 18.78 million tonnes is lower than the average production by 0.61 million tonnes.
The current year’s production of Sugarcane estimated at 335.33 million tonnes is higher by 10.22 million tonnes as compared to average production.
The estimated production of Cotton at 33.40 million bales (of 170 kg each) has registered an increase of 5.32 million bales as compared to average cotton production of 28.08 million bales. Production of Jute is also estimated to be marginally higher than the average production.
September 23, 2012
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.”
“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.”
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