Manmohan The BEST PM....INDIA HAS EVER HAD.....

Economists are already drawing parallels between the Great Depression in 1929 and the one that started in 2008 and are of the view that the problems, like in the thirties, could last for a few years.


NEW DELHI: In his first acknowledgement of what economists and corporate chiefs have been saying for past few months, PM Manmohan Singh on Saturday warned that achieving 9% growth during the next plan period - April 2012 to March 2017 - may be tough in the absence of difficult decisions.

In his opening remarks at the meeting of the full Planning Commission, Singh said the panel settled on the 9% growth target, instead of 9%-9.5% as suggested earlier due to the uncertainty in the global economy and challenges at home. The PM's statement indicates that the global environment - led by problems in Europe and the US - is expected to be uncertain for a while. PM said in the best case scenario the growth rate during the five-year period would grow 9.2%. Economists are already drawing parallels between the Great Depression in 1929 and the one that started in 2008 and are of the view that the problems, like in the thirties, could last for a few years.

The PM said that health, education and infrastructure spending would get more funding than other sectors. PM's observations on taking tough decisions come at a time when issues such as liberalization of foreign investment regime for retail and defence production are held up due to inter-ministerial wrangling. The proposed national manufacturing policy too is held up as labour and environment ministries are unwilling to show flexibility in reducing undue inspection and clearances that are required.

The Centre and the states have also been divided on the rollout of Goods & Services Tax from next April due to lack of political consensus.

Singh said a broader national consensus was required to push the next round of reforms that entailed legislative changes.

http://timesofindia.indiatimes.com/india/Tough-to-attain-9-growth-PM/articleshow/9680175.cms