Prez address signals more reforms, efforts to check inflation

New Delhi, Feb 21 (PTI) Signalling that the forth
coming budget would give a vigorous push to economic reforms,
Indian President Pratibha Patil Monday said the government's
top priority would be to check inflation without hurting
growth.
"We have to maintain the momentum for reforms on a wide
front," she said in her address to Parliament marking the
beginning of the Budget session.
The indication comes a week before the presentation of
the General Budget for 2011-12 in the lower house of
Parliament, Lok Sabha on February 28 by Indian Finance
Minister Pranab Mukherjee.
The top priority before the government continues to be
combating inflation, sustaining growth momentum and encourage
domestic and foreign direct investment (FDI), she said while
outlining the task ahead.
"The Indian economy continues to be on a trajectory of
high growth despite an adverse global environment... However,
there is no room for complacency," she said while making a
case for wider push to economic reforms.
To achieve this twin objective, she said "we have
strived to make the domestic environment more conducive to
investment, encouraging public as well as private investment,
and domestic as well as foreign investment, particularly FDI.
Referring to the high inflation during the past one
year, the President said "my government is deeply concerned
over the adverse impact of inflation on the aam aadmi (common
man) and the threat it poses to the growth momentum."
While the food inflation had touched 18.32 per cent in
December, 2010, before moderating to over 11 per cent this
month, the overall inflation still hovers above eight per cent
as against the comfort level of 5-6 per cent.
The economic growth, however, is expected to be 8.6
per cent for the current fiscal, up from eight per cent a year
ago.
To fight rising food prices, Patil said efforts must be
made to increase agricultural productivity. "The long term
solution lies in increasing productivity and production... the
Government stands committed to ensuring that farmers get
remunerative prices for their produce," she said.
However, to insulate poors from the impact of high food
prices, the government will soon bring Food Security Law to
offer highly subsidised foodgrains to every family below the
poverty line, Patil said.
"The states are being consulted (over Food Security Law)
as the success of the programme hinges critically on their
commitment to reforms in the Public Distribution System
(PDS)," she added.
Pointing out that infrastructure development was
critical to overall economic growth, she said private sector
would need to play an active and bigger role in investments
estimated to the tune of over Rs 40 lakh crore in the 12th
Five Year Plan period (2012-2017).
The President pointed out that the huge quantum of
investment in infrastructure sector cannot be funded by the
state alone.
"The government has put in place the required framework
for a transparent public-private sector partnership. The
contribution of the private sector has reached 34 per cent
of the total investment in infrastructure last year", she
said.
The President said while pursuing the objective of
sustained economic development, the government would ensure
that "the poor, the weak and the disadvantaged get a fair
share in the fruits of growth".
Referring to the Indian telecom story, she said the
country had the second largest wireless network in the world
and the government would make concerted efforts to take mobile
and broadband services to the rural areas.
The government, she added, would provide incentives
for FM radio operations in Jammu and Kashmir, the North
Eastern States and island territories.
In order to ensure power at reasonable rates to all,
Patil underlined the need for reforms, particularly to improve
the financial and technical capabilities of the electricity
distribution companies in the states.
She said the government has already operationalised the
National Solar Mission with a view to adding 20,000 MW of
solar capacity by 2020.
Describing the mineral wealth a vital national resource,
the President said, the Mines and Minerals (Development and
Regulation) Act would be replaced by a new law to ensure that
"local communities benefit adequately from the development
process".
As regards the oil sector, she said, the government is
encouraging the national companies to "aggressively pursue oil
and gas opportunities overseas".
The ninth round of the New Exploration Licensing Policy,
she added, has been launched to harness the hydrocarbon
potential of the country.