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Putting the Economy Back on Track Paramount: Prez
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Also see: Full text of the President's speech

Seeking to heal the fractured and contentious politics of the previous years, President Pranab Mukherjee today said the new government at the centre will work for development in a resurgent India in which corruption will have no place.

"They (people of India) have voted for a united, strong and modern India -"Ek Bhjarat-Shreshta Bharat"- My government will work to fulfil these aspirations, with the involvement of all the 125 crore people of this great country," he said.

The president was addressing the first joint sitting of Parliament as mandated by the constitution.

The address is the political, economic and foreign policy road map of the Narendra Modi government voted to power and covers virtually all the crucial areas including the need to address the difficult economic situation in which inflation has to be reined in and the importance of growth.

Mukherjee noted that the just-concluded elections had been an election of hope.

"The surge in aspirations and the belief that these could be realised through democratic processes, has been amply reflected in the record 66.4 per cent participation by voters and a clear verdict in favour of a single political party after a gap of nearly 30 years."

"The electorate transcended the boundaries of caste, creed, region and religion to come together and vote decisively in favour of 'Development through Good Governance'," he said.

Extending warm greetings to the newly-elected MPs, the president told them that they should never forget that they are in Parliament because of the people. "Serving them should be our first priority."

Noting that the general elections were smooth and largely peaceful, he congratulated the Election Commission and the official machinery for successful conduct of the exercise.

"The unprecedented interest shown by the people of India in the elections is a sign of progressive deepening of our vibrant democracy."

The president said the country needed a strong and stable government that could provide effective leadership.

"In my Republic Day speech earlier this year, I had hoped for 2014 to be a year of healing after the fractured and contentious politics of the previous years."

"Standing here today, I applaud the wisdom of my fellow citizens for having voted for stability, honesty and development in a resurgent India in which corruption will have no place."

Mukherjee said his government is committed to nurturing the right environment for actualising this mandate of the people.

"For this, it pledges itself to the principle of 'Sabka Saath, Sabka Vikas', which can be fulfilled only through your active participation."

"We will work together to re-establish the credibility of the institutions of democracy. My government will function on the mantra of 'Minimum Government, Maximum Governance'. In all our actions, we will be guided by the core values of our great civilisation."

The address said the government is dedicated to the poor as poverty as no religion, hunger has no creed and despair has no geography.

"The greatest challenge before us is to end the curse of poverty in India. My government will not be satisfied with mere 'poverty alleviation' and commits itself to the goal of 'poverty elimination'."

Newly-elected Lok Sabha members and those belonging to the Rajya Sabha, Prime Minister Modi, his cabinet colleagues, former Prime Minister Manmohan Singh, Congress President Sonia Gandhi and other opposition leaders heard the 50-minute speech with rapt attention interspersed by the occasional thumping of desks.

The president said putting the economy back on track was paramount.

The government will put it back into a high growth path, rein in inflation, reignite the investment, accelerate job creation and restore the confidence of the domestic and international community.

"My government will create a policy environment which is predictable, transparent and fair. It will embark on rationalisation and simplification of the tax regime to make it non-adversarial and conductive to investment, enterprise and growth."

"My government will make every effort to introduce the Goods and Services Tax (GST) while addressing the concerns of states. Reforms will be undertaken to enhance the ease of doing business. My government will follow a policy of encouraging investments, including through FDI, which will be allowed in sectors that help create jobs and assets," Mukherjee said.

The economy, Mukherjee said is "passing through an extremely difficult phase. For the two consecutive years, our GDP growth has been less than 5 per cent. Tax collection has declined. Inflation continues to be an at unacceptable level".

Referring to the high food inflation, he said the new government will give "top most priority" to contain it.

"Containing food inflation will be the topmost priority for my government. There would be an emphasis on improving the supply side of various agro and agro-based products. My government will take effective steps to prevent hoarding and black marketing," Mukherjee said.

Outlining the policies of the BJP-led NDA government, Mukherjee said efforts will be made to reform the Public Distribution System (PDS) by incorporating the best practices from the states.

On the possibility of deficient rains, he said that "my government is alert about the possibility of a subnormal monsoon this year and contingency plans are being prepared".

The retail inflation accelerated to a three-month high of 8.59 per cent in April mainly due to increasing prices of vegetables, fruits and milk.

"Inflation continues to be at an unacceptable level," he said, adding that "we will work together to usher our economy into a high growth path, rein in inflation, reignite the investment cycle".

The government, he added, will take effective steps to prevent hoarding and black marketing and reform the public distribution system, incorporating best practices from the states.

The government, Mukherjee said, will endeavour to "create a policy environment which is predictable, transparent and fair."

"It will embark on rationalisation and simplification of the tax regime to make it non-adversarial and conducive to investment, enterprise and growth," he added.

The government will set up world class investment and industrial regions, particularly along the Dedicated Freight Corridors and Industrial Corridors spanning the country while encouraging domestic industry to innovate and collaborate internationally, he said.

"It will strive to move towards a single-window system of clearances both at the centre and at the states through a hub-and-spoke model," the president said.

To strengthen India's global trade share, procedures will be simplified and trade infrastructure strengthened to reduce transaction time and costs. Besides, export potential of small-scale and handicraft sectors will be encouraged, he said.

In order to create jobs, he said, the government will promote labour-intensive manufacturing and endeavour to expand employment opportunities in tourism and agro-based industries.

The government will transform employment exchanges into career centres and also strengthen pension and health insurance safety nets for labour force of all categories, in addition to providing them access to modern financial services, Mukherjee said.

Giving further details of the government's agenda, he said efforts will be made to increase public and private investment in the farm infrastructure and convert farming into a profitable venture through scientific practices and agro-technology.

The government "will adopt a national land use policy which will facilitate scientific identification of non- cultivable land and its strategic development", he added.

Sonia Gandhi reacted by thumping the desk as the president outlined the new government's commitment to zero tolerance to violence against women and its promise to provide 33 per cent reservations for them in Parliament and state assemblies.

Former Prime Minister Manmohan Singh and Advani also welcomed it by thumping the desk.

Singh was seated with Modi and Jaitley in one of the first

The government's plan for cleaning the Ganga river was also hailed in the House.

The mention of the government's commitment to clean the Ganga and to ensure the return of Kashmiri Pandits to the Valley drew maximum applause from members.

The president said that the government will take all steps to ensure a perennially clean Ganga.

On the foreign policy front, the president said that while the government was committed to working towards a peaceful, stable and economically inter-linked neighbourhood, "we will never shy away from raising issues of concern to us at a bilateral level."

"We emphasise that the future of shared prosperity can only be built on the foundation of stability in the region, which requires sensitivity to security concerns and an end to export of terrorism to neighbours."

As regards Federalism, the president said that state-specific development models will be developed taking into account the special needs and unique problems of coastal and desert areas.

"The states and the centre should function as an organic Team India. In order to actively engage with the states on national issues, my government will reinvigorate fora like National Development Council and the Inter-State Council," he said.

The president said that the highest priority will be accorded to bring the eastern region of the country on par with the western region in terms of physical and social infrastructure.

"My government is committed to addressing the issues relating to development of Andhra Pradesh and Telangana. The government will lay special emphasis on improving the intra-region connectivity and border infrastructure in the Northeast as well as in Jammu and Kashmir."

"The issue of infiltration and illegal immigrants in the Northeast region will be tackled on priority and all pending fencing work along the Northeast border will be completed," he said.

Also see: Full text of the President's speech

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Daily Mail

Jun 28, 2014
04:25 AM

More details: Why did congress fail?
My reasons for the failure of congress are two. I repeat a previous blog.

1. The other megacorruption ignored by MMS is this which led to his, the congress' and economy's downfall.

NET IMPORT is called FOREIGN DEFICIT = CURRENT ACCOUNT DEFICIT = CAD. The difference (FISCAL DEFICIT - CAD ) feeds the economy. The sum FISCAL DEFICIT+ CAD means NOTHING. Yet the economists keep adding them ( Rajan, Chidambaram and Manmohan Singh ) which kills the economy. FISCAL DEFICIT is vital to the economy. Now you should understand why I say algebra killed the Indian economy. X%GDP DEFICIT will grow India's economy by exactly X%GDP. For example 4.6% GDP DEFICIT will grow the economy by 4.6% GDP, as everybody knows. Manmohan Singh is to be assigned the blame for letting this happen. He was sleeping during his watch.

You need to maximize (FISCAL DEFICIT- CAD) instead of minimizing (FISCAL DEFICIT + CAD). This mistake did congress in. Surely MMS must have known. Rajan and Chidambaram could be brainwashed by the Chicago school. How come they do not understand an accounting identity? All accountants know this and use it in calculating and reporting GDP.


At 30% of GDP deficit the economy would grow to 1.3^10 = 13.8 times present GDP in 10 years. Congress is no longer in the picture and perhaps Modi can do this if he gets an economist not brainwashed by the Chicago school, who understands fiat money. 

2. The congress did not act swiftly when various scams were exposed. This assured the people of corruption in congress.
Now for Modi. 
3. Modi is repeating the same.

Parthasarathy Shakkottai, Long Beach
Jun 10, 2014
01:24 AM

A good beginning for the new government! Small-minded comments not appropriate.

Anwaar, Dallas
Jun 09, 2014
04:31 PM

What NDA government is now promising through the President’s speech is welcome. But let us do some reality checks. (a) BJP has never been known as a party which has any distinct and well-thought of economic philosophy. BJP will have to do the balancing act when it will have to protect interests of both retailers (its traditional voters) and consumers.
(b) When it deals with inflation, it has not come out with any sensible plan to reduce taxes on petroleum products levied by both the Central and the State government. These taxes are known to have cascading effect on inflation. Here gain BJP will have to do the balancing act of protecting interests of revenue and controlling the contributory factor for inflation.
(c) As regards current account (CA)deficit and policy regarding unlimited import of gold, consumer goods, crude oil, etc., BJP has never thought of any sensible policy. In case of fixation of prices of petroleum products, it has no policy of its own. It has, however, followed an opportunistic policy of opposing price increase. Here we cannot ignore that to manage the current account deficit, the Government may not be in a position to allow unlimited import of crude oil. BJP has to come out with a sensible policy to rein in the CA deficit.
(d) When it comes to acquisition of land for industry of for roads or any non-farming activity, we find that the biggest hurdle is our hypocrisy. On the one hand some of our politicians, particularly those who claim to represent farmers’ interests, have often lamented the fact that farming is unprofitable. But what we see is aggressive opposition to acquisition of land for industry or infrastructure projects. If the opposition is based on price of land, it is understandable and can be handled in a professional manner. But the hidden agenda is political and BJP is no exception to the rule.
(e) As regards labour law reforms, we cannot ignore the fact that there is a close connection between the social security available to employees of industrial undertakings and a policy to allow employers to close factories, reduce staff, etc. We have simply not done anything to improve social security and that makes it more difficult to allow freedom to employers
(f) Taxation policies are also not conducive for generating employment. Earlier, when tax incentives were given on the basis of capital expenditure rather than utilization of production capacity (for creation of which such capital expenditure was incurred), we noticed that excess capacity was created and that resulted in wastage of capital resources. Situation has not changed much and we are still not serous about optimum utilization of installed capacity. Improvement of investment climate has to deal with taxation policies that may ultimately lead to less than optimum use of capital resources.

Narendra M Apte, PUNE
Jun 09, 2014
02:32 PM

" Poverty as no religion, hunger has no creed and despair has no geography."

The epitome of secularism. In fact a paradigm shift. The first call on a nation's resources goes to the poor, irrespective of caste, creed, region or religion."

The MMS doctrine has been consigned to the dustbin of history.

D.L.Narayan, Visakhapatnam
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