PM promises steps to reverse economic slowdown

By Our Special Correspondent

NEW DELHI, AUG. 15. The Prime Minister, Mr. Atal Behari Vajpayee, today termed the slowdown in the economy as temporary and promised that the Government would soon take steps to reverse it. He announced a new orientation to the economic policies to make them pro-poor, pro-village and pro-employment and outlined a series of measures to achieve these objectives.

Addressing the nation from the ramparts of the Red Fort here, he touched upon some recent scams affecting the middle class but without mentioning any specific case. He conceded that recent developments had highlighted some weaknesses in the financial and capital markets and said, ``This has made people feel rather worried. We have taken several steps to remove these weaknesses and we shall take more in the future. The functioning of the stock markets and financial institutions will be reformed to protect the interests of small investors.''

Terming the economic slowdown as a ``temporary phenomenon'', Mr. Vajpayee pointed out that it was also a global feature and not limited to India alone. ``But there is no need to get too worried on this score because the fundamental indicators of India's economy are quite strong. Prices are stable. Inflation is under control. Foreign exchange reserves are at a record high. And our godowns are bursting with foodgrains. The good monsoon has come with promising prospects on the economic front.''

The Government had taken steps to increase investment in all infrastructure areas, in industries and in agriculture. ``We shall soon take more steps in this direction. These will help in bringing the economic slowdown to an end.''

Corruption figured prominently in his address. ``Some cases of corruption and scandals have surfaced in recent times. We cannot turn a blind eye to corruption nor can we let it proliferate. A corrupt man must receive punishment for his deeds. I assure you that corrupt elements will not be able to escape the long arm of the law, irrespective of how high a chair they may occupy.''

For the corporate sector, Mr. Vajpayee had a rather stern message. ``Profits earned by hook or by crook cannot be the sole criterion for judging the success of a business. The success of liberalisation requires the steady development of a new corporate ethic.''

While liberalisation had benefited India, the fruits had not adequately reached the poor and those living in the rural areas. ``Inequalities have increased. Therefore, after serious introspection, my Government has decided to give a new pro-poor, pro-village and pro-employment orientation to our economic policy. We shall make necessary modifications in the policy to remove regional imbalances and social inequities.''

He announced a Rs 10,000-crores scheme to provide additional and guaranteed employment in rural areas. The Centrally-sponsored scheme - `Sampoorn Gramin Rozgar Yojana' (Comprehensive village employment programme) - will pay wages in cash and foodgrains to those who are employed by panchayats for building durable rural assets. A total 50 lakh tonnes of foodgrains, worth Rs. 5,000 crores, would be provided to the States every year. All Central schemes would be merged into this mega scheme, expected to generate nearly 100 crore man-days of employment every year.

Mr. Vajpayee also announced enhanced credit flow to the unorganised sector and to women entrepreneurs, a new housing scheme for the urban poor, three lakh housing units for the armed forces on an accelerated basis and a resolve to provide road and internet connectivity to all villages. Subsidised foodgrains would be provided to adolescent girls and expectant and nursing mothers belonging to below the poverty line families and also to religious, social and educational organisations engaged in mass- feeding programmes for the poor.

The coming year would be observed as the `Year of Implementation' and a rapid action force would be created to oversee the implementation of various poverty-alleviation and employment generation programmes.

The Prime Minister also allayed fears that cheap imports would flood India because of its commitment to the World Trade Organisation. ``These (apprehensions) have been proved false. We are quite capable, depending on our needs, to impose or hike import duties and to check unfair imports. We have, in fact, done so in many cases.''

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