Economy will bounce back: Singh

“Going back to a 9 per cent growth path is our greatest challenge. For this, we will take whatever steps required—by increasing capital inflow into the country, or by encouraging exports or increasing public investment and expenditure,” the prime minister said in his Independence Day address from the ramparts of the Red Fort.

“By the end of the year, I am confident there will be a major change,” Singh said in his 40-minute speech as he laid down the agenda for the United Progressive Alliance (UPA) government.

“Till then, we all have to cope with the situation,” he said in the speech delivered in Hindi. “I appeal to business leaders and industrialists to work together in this endeavour and meet their social obligations and responsibilities.”

Singh said: “It is only a result of our policies that the global crisis has affected us to a lesser extent than many other countries. We expect there will be an improvement in the situation by the end of this year. But until that time we will all have to bear with the fallout of the global economic slowdown.”

Noting that the country is facing 29 per cent deficient monsoon, Singh said the rain shortfall would have an adverse impact on crops, but the country would able to deal with the situation.

The prime minister said he was also aware that the soaring prices of essential commodities were causing hardship to citizens, especially the poor. “We have enough food stock. Every possible step will be taken to bring down prices,” he said.
Singh also promised to deliver a food security law under which every family below the poverty line will get a fixed amount of foodgrain every month at a discount.

It was equally imperative for the country’s farm sector to grow faster. He added that the country needed yet another Green Revolution in order to enhance productivity.