Inflation coming under control; economy will register over 6% growth in current fiscal: PM

The Prime Minister has said that economy will clock more than six per cent growth in the current fiscal. Dr. Manmohan Singh said, economy will grow at eight per cent in the 12th plan period with agriculture registering a growth of four per cent.

He was addressing a function to mark the fourth year of UPA II government and the release of the Report to the People in New Delhi last evening. Dr Singh said that the slowdown in the economy is due to many factors including meltdown in the western countries.

The Prime Minister enumerated the four key achievements of the government as improved performance of the economy, inclusive growth, delivery of better services and governance and improved relations with changing and challenging world.

He said, UPA government has taken the country forward on all these four fronts in the nine years.

Expressing hope that the current account deficit will come down gradually, Dr. Singh said, the economic situation is turning around, inflation is coming under control and the fiscal deficit is being brought under control.

Talking about problems of governance, Dr. Singh said these problems have to be addressed by both the Centre and the States.

He said, the UPA government has taken several steps to improve governance and accountability and has done more in this area than any other government. He also said that the Right to Information Act has become a key instrument of empowerment of people.

He said, government has introduced the Lokpal Bill, which responds to a very wide demand for a more independent institution to probe allegations of corruption.

He said, faster agricultural growth, combined with government programmes such as MGNREGA, and higher investment in rural infrastructure have improved real wages of agricultural labour.

On the allegations of corruptions in spectrum and mining blocks allocations, Dr. Singh said, the root cause of the problem has been addressed and more transparent systems have been introduced for the future.

He said, allegations of impropriety are being investigated and cases of wrong doing will be punished.

On India's relations with the world, the Prime Minister said, India has deepened its relationship with the United States, Russia, and Europe and civil nuclear agreement with US has opened a new chapter in India’s technological development.

He pointed out that relations with China are showing country's ability to manage difficult issues while working together in areas of convergence.
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