The Prime Minister had comeback with a resounding speech that had silenced all of his critics on his latest policies on FDI in retail and also the price hike of diesel and the subsidy cap on Cooking gas. His speech had reaffirmed his role as the architech of the economic reforms and strengthened the beliefs of people that he can now revive progress and undo the slowdown in economic growth if he is given a chance.
Though he rarely addresses the nation, Manmohan Singh had managed to answer almost all the questions that the UPA government was facing since the 1991 crisis was invoked. Singh had instilled confidence in the people after he said that this would be a repeat of the incidents in 1991 after which the economy had rebounded to be self-sufficient. He assured that his recent measures would bring back the nation back on track. He said, "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 are necessary for this purpose".
The people of the nation, at least a majority of them had continually prodded the government to be the one that serves the common man. Common Man has no interest whatsoever in the reforms that the government makes except that the government can work for and with the "aam aadmi" whilst taking steps towards a progressing future.
Manmohan Singh had said that he had not deviated from the agenda of being the government of aam aadmi. He said that the hike in the price was actually beneficial and a discouragement to the rich people who are the ones with the capacity to purchase a diesel car or an SUV and exploit the benefits more than any other sector. He said a policy meant for the poor had been misused widely while the government had incurred lakhs of crores of losses. He questioned the country whether the government should run large fiscal deficits to subsidize them. He also added that the government had to rise the price by Rs 17 but managed to stop the hike at a meagre Rs 5 for the sake of the common man. He also insisted that Kerosene price was untouched since it was a commodity utilized by the poor.
Talking on the Doordarshan, he mentioned that it was most essential that a price hike in fuel sector was invoked. He said that the government petroleum subsidy had gone beyond the levels government could handle and if there were no reforms made the debts could have gone as high as Rs 2 Lakh crores. "Where would the money for this have come from? Money does not grow on trees," the PM said. He also metioned that inaction on the same situation could only have made things worse for the nation as the consequences would have started as inflation progressing to unemployment which lead to loss of investors' confidence.
The sole idea of addressing the nation was to make the people of the nation understand why the brazen reforms, though tough, were of utmost importance at this point of time. Even pratically, Manmohan's reforms had witnessed tremendous change in the Sensex. The reassuring gains in the Sensex of over 400 points in a single day was more than a merely positive result in the economy of the nation. Mulayam Singh Yadav had also pledged external support to the government, probably after understanding the underlying intentions of the architect of Indian Economy, Manmohan Singh.
With his confidence boosted by the growth in the Sensex, PM said that the government would not stop here. "We need to do more, and we will do more," said an unruffled PM, indicating that there are more reforms that the nation needs to adress right now to ensure an all inclusive growth while improving the public finances.
Recounting the economic crisis of 1991, the PM said that the nation was in a deplorable state with no lenders coming forward to help the government financially. He mentioned that it was only due to the stringent and determined steps that the government has taken back that that allowed the nation to experience the sweet fruits thanks to the bitterness experienced by the government. "We are not in that situation today, but we must act before people lose confidence in our economy," he said.
"World is not kind to those who do not tackle their own problems," he added whilst talking about European nations which are now facing neck-deep financial problems after being unable to pay their own bills due to inaction.
He also effectively spoke on the FDI in multi-brand retail warding off all criticism. He said that the 1991 reforms of allowing foreign investment in manufacturing was a similar situation. He said with that reform Indian companies had risen to new heights at home and overseas. He also mentioned that the steep increase in jobs by the foreign companies especially in information technology, in steel and in the auto industry. "I am sure this will happen in retail trade as well," he confidently added.
Industrialists and the markets had clapped and whistled at the moves but the political parties had refused to accept his statements. He said that he understood the crisis of 1991 and that he would not let the same thing happen to the nation again.
"I am determined to see that India will not be pushed into that situation. But I can persuade you to understand why we had to act", he said quoting he would never let India face a situation similar to European nations like Greece.
He strongly reassured the people of the nation, "I will do everything necessary to put our country back on the path of high and inclusive growth. But I need your support. Please don't 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."
"As prime minister of this great country, I appeal to each one of you to strengthen my hands so that we can take our country forward and build a better and prosperous future for ourselves and for the generations to come," he said.
The time has come to believe in the Prime Minister of India who has not been named the architect of India for nothing. His reforms had already shown effect on the Sensex already. Let us join hands and help him to take the country forward.
(AW- Anil)
