“I rise to thank all Members of the House in conveying my sincere thanks to the Hon’ble President of India for her enlightening address. Over the past few days, we have had a very constructive debate over the issues covered in Rashtrapati ji’s address. While several Members have expressed satisfaction at the working of the Government, some others have criticized it. This is as it should be. Before I come to the main subject, a tragedy occurred yesterday in the temple in district Pratapgarh. The issue, I believe, has been raised by a concerned Member in the Rajya Sabha yesterday. I join all Hon’ble Members in conveying our heartfelt condolences to the families of deceased and wish speedy recovery to all those who have suffered injuries. We have decided to make from the Prime Minister’s National Relief fund an ex-gratia payment of Rs.2 lakh to the next of kin of the deceased and Rs.50,000 to those seriously injured. The essence of the Hon’ble President’s address is contained in paragraph 3 and I seek your indulgence to read the paragraph once again. ‘My Government was voted to Office with a clear-cut mandate to protect the people, the values of pluralism and secularism and ensure rapid growth with justice and fairness for all. Since assuming office from May 2009, my Government has worked single mindedly to build on the achievements of its earlier term to deliver the promises of faster and more inclusive growth. The aam aadmi was amidst the core of the promise. The aam admi had to be protected against the ravages of the worst ever global economic crisis since the great depression and against failure of monsoon in a large part of the country in mid 2009. Our economic performance has to be judged against the twin impact of the international financial crisis which suddenly erupted in December 2008 and subsequently the failure of South West monsoon in the year 2009. And I sincerely believe that the way our Government has dealt with the impact on our economy of these two adverse turn is beyond our control is praiseworthy. And indeed the whole world is praising India for the success it has achieved in this situation. Under the impact of the global economic crisis, the mighty countries of America and Europe have experienced negative growth rates. In 2008-09, India’s growth rate also declined but we still maintained the growth rates of 6.7 per cent. In the current year, we will have a growth rate of minimum of 7.2 per cent but possibly at 7.5 per cent. In the fiscal year 2009-10, the growth rate of the economy will be probably close to what I had mentioned 7.5 but most conservative estimate is 7.2. In the next fiscal year, I am confident of achieving a growth rate of 8 per cent or more and the year there after, we will be able to return the economy over 9 per cent growth. Why do I emphasize growth rate? Growth is not an end in itself. The end is the well being of our people. Growth rate is only a means to provide relief to those who are suffering. Growth is a means to find resources to spend on education, on health, on rural development, on social security. And if we do not grow fast enough, we may talk about removal of poverty, we may talk about expanding irrigation and other facilities in rural areas, it will all remain pipedreams. The fact that the first three years of our Government saw a sharp increase in the growth rate enabled our Government to devote a lot of resources in rural development, in agricultural development, for education. And therefore it is very important that the economy should get back to the growth rate of 9 per cent or more. I am confident that the macro economic fundamentals of our economy are very sound. Why do I say this? Ten years ago, nobody would have imagined that India’s savings and investment rates will be as high as 35 or 36 per cent. In the last 4-5 years, we have managed the economy that savings and investments in our country are now equal to the savings and investment rate which prevailed until 10 years ago only in the countries of South East Asia or East Asia. Moreover, I think in the years to come, in fact two decades the dividend arising from the sharp rise in working age population to total population of our country will provide another positive factor to push the savings rate of the country close to 40 per cent of our national income. If we manage our economy well, if we manage the creation of social and physical infrastructure well, if the processes of governance are improved to reduce the scope for corruption, there is no I think barriers to India entering on a long-term basis, the age of double digit growth. This is the vision that our Government is working to realize. I recognize that there are certain problems which cannot be wished away. The Hon’ble Members on both sides of the House have referred to the price situation. I will be the last one to deny that the behaviour of food prices in the last one year is something which does not worry us. We have been worried about it a great deal, to the extent that we could adopt measures, we have adopted and the House has my assurance that if any practical methods can further bring relief to our people, our Government will always be sensitive to the concerns of the Members. The pricing situation that emerged was a bye-product of events which were not in our control. There is first the effect of international commodity prices which have gone up and since India is no longer a closed economy, despite what Dr. Joshi may say, we are dependent on imports of essential commodities of vegetable oils, which are in shortage, we depend upon import of sugar, we are depending to a substantial extent on import of pulses and when international prices of these commodities rise, I think inevitably there is an impact in our country. And when international prices of rice and wheat soar, if we do not take remunerative prices to our farmers our ability to procure for the public distribution system will be seriously in danger and therefore we have to take remunerative prices to our farmers but despite the effect of that it raises the floor price on market determined prices and I invite this House to reflect on a situation that we were facing. There was global recession simultaneously because of the draught, because of the commodity prices worldwide, there was pressure on the prices. We could have dealt with the price effect, by a very tough monetary and fiscal policy which could have depressed the demand would that have been the course the House would recommend to me? If we had gone that route there would have been large scale unemployment and steep fall in industrial production in our country. At a time, when the world is faced with global economic crisis, we have so managed our economy then the price that we had to pay was in the form of higher prices. We have not allowed large scale unemployment to emerge as a problem in our country despite the worldwide recession that we had. It is at the same time we were able to introduce a large number of stimulus which ensured that interests of the weaker sections of this country were protected. Take for example, the National Rural Employment Guarantee Programme. 4.5 crore households have benefited. 50% of them are Scheduled castes and Scheduled Tribes. I am not saying that in one go or in one short period of five years we can relieve poverty but if we are sincere, if we use all the resources of the economy to step up our growth rate , if we manage our fiscal situation well then we can certainly soften the harsh edges of extreme poverty in a period of about five more years. We need to invest more in education, we need to invest more in health, we all know that we need to invest more in rural infrastructure and urban infrastructure we are doing that but more needs to be done. Please help us to strengthen the growth impulses in our economy so that we can accelerate the tempo of social and economic change. I had said growth is important not in itself but because it provides us the resources to tackle the problem of poverty ignorance and disease about which Jawaharlal Nehru spoke from this Central Hall of Parliament on the midnight of 1947. Madam, many Members have in the discussions have expressed their anxiety about rising prices. No doubt we had a separate discussion on this issue. But I would again like to inform this house that the Government has been alive to the problem and has taken all possible measures to address the issue. To put matters in perspective, it is important to recognize that in 2009 we had one of the most severe droughts in recent history, the worst since 1972. As a result, the production of food-grains, pulses and oilseeds has been adversely affected. Production of sugarcane has also gone down. This was preceded by the economic slow down, to respond to which the Government had to stimulate demand and increase the availability of bank credit. We have taken decisive action on several fronts. We acted early to limit the fall in the Kharif production. As a result we could contain the reduction in foodgrain production to a large extent. We have been able to procure around 23 million tonnes of rice this year, which is not very different from what we had procured last year during the same time. There should be no panic on the food situation front considering the comfortable level of food stocks that are available with the Central Government. Rabi prospects are also very encouraging. Post-monsoon rains have been good. All this augurs well for our ability to stabilize food prices at a reasonable level. We have permitted import of raw and white sugar at zero duty and imports are taking place. Enforcement in terms of imposing stock and time limits is in the hands of the State governments. We have empowered the State Governments to do so through the Essential Commodities Act and I have requested the Chief Ministers to take stern action against hoarders. Madam Speaker, many Honorable Members have spoken about the export of sugar. Very often we have to honour prior international commitments. The amount of sugar that India has exported relative to imports, is so small that it is surprising that so much is being made out of this. In November 2009 India exported sugar worth Rs 7.94 crore whereas it imported sugar worth Rs 611.40 crore. In December 2009 the exports of sugar were worth Rs 12.34 crore whereas the imports were worth Rs 216.90 crore. Madam, On this it will be obvious that the such a breaking part in sharp increase in sugar prices are to be found in the cyclical nature of the production of sugar cane. There is a cycle which has been noticed for almost 50 years in the behaviour of sugarcane production. 2 or 3 years this is one cycle, with upward pressure on prices followed by a steep fall in prices. We have to find ways and means to stabilise the sugar economy despite this behaviour and we will explore ways and means for the future to see that in future a crisis of sugar can be stabilised at reasonable level unmindful of the cyclical nature of the production of sugar. Madam, I now come to internal security issues. The overall security situation in the country has remained satisfactory in the last year. This is not to ignore the horrible terrorist act in Pune but taking an overall view of the internal security situation I am stating that. A number of concrete steps have been taken to strengthen and reorient our security architecture in order to meet the growing threats of terrorism, insurgency and communalism. We have remained in close touch with State governments to evolve a common and practical approach. We are taking firm action to curb naxalite violence. It is unfortunate that they are targeting innocent people and destroying roads, power lines and other essential infrastructure. In some places, we have received reports of the use of children. We have drawn up an integrated plan to tackle the problem in consultation with the States. A high-level meeting was recently held with all the Chief Ministers, where we reviewed the situation. The security forces have achieved several notable successes of late. While we are determined to take firm action, we are ready to talk to any group that abjures violence unconditionally and agrees to abide by the due constitutional process. Madam, the National Investigation Agency has commenced its work. Four regional hubs of National Security Guard have been set up. We are in the process of setting up a National Counter-terrorism Centre. A National Committee on Coastal Security has been set up which has adopted an integrated approach to coastal security and has taken major initiatives and decisions for registration of vessels, issue of identity cards to fishermen, installation of transponders on boats and setting up of four Joint Operation Centres. Coastal police stations and interceptor boats have become operational under the Coastal Security Scheme. To supplement the efforts of state governments in modernizing their police forces, we have provided Rs. 1,250 crore during the current year, of which Rs. 955.53 crore have been released to states up to 28th January this year. This has helped States in augmenting the resources available to police forces in terms of vehicles, weaponry, communications, training, forensic facilities, intelligence capabilities, security equipment and buildings. The Bureau of Police Research & Development is engaged in impact assessment study of the scheme so that the scheme could be improved. Some Honourable Members have said that agriculture has been growing at negative rates. This is indeed surprising. A drought is beyond anybody’s control. A severe drought does result in negative growth in agriculture and it is no surprise that agriculture is expected to grow at – 0.2% in 2009-10. We should not, however, forget that in 2002-03, following the drought of 2002, agriculture growth went down by a good 7%. Food production went down from 202 million tones in 1998-99 to 174 million tones in 2002-03. I would also like to remind the Members that the agricultural sector has been growing at an average rate of 4% during the period 2005-2008, compared to the growth rate of around 2 percent from 1997-2002. Our pro-farmer policies have borne fruit. For the first time in the recent past we have reversed the trend of declining investment in agriculture and stepped up investment in agriculture through the Accelerated Irrigation Benefit Programme, the Rashtriya Krishi Vikas Yojana, the National Food Security Mission, the National Horticulture Mission, and other such schemes. We should also not forget the investment in water conservation structures that is being made through millions of works under the Mahatma Gandhi National Employment Guarantee Scheme. Food production has increased from 174 million tonnes in 2002-03 to 233 million tonnes in 2008-09, which represents a growth rate of around 6 % per year. We are, however, conscious that a lot more needs to be done to improve agricultural productivity and we are committed to continuing our efforts to increase both public and private investment in agriculture and diversifying our agriculture so that higher farm incomes provide stability to the lives of our farmers. Dr. Joshi referred to our going to America to seek solutions to agricultural problems of our country. I wish to assure him that there is no scope for this sort of galat fahmi. Our government recognises the imperatives of food security that self sufficiency in basic food grains has to be a part of the national policy for development. This is a policy which we have pursued under successive Congress governments way back from the 50s. This is the policy we recognise and plan to pursue. Madam, The decision to pay remunerative prices by way of minimum support prices is a part of our efforts to incentivize growth of agricultural production and productivity. I think, Advaniji raised the issue of farmers’ suicide. Our Government has been very sensitive to the issue of farmers’ suicide and everything possible, in terms of Government action, is being done to ameliorate agrarian distress. The loans of small and marginal farmers have been waived. For other farmers a one time settlement has been made. These measures have benefitted 3.68 crore farmers to the extent of Rupees 70,000 crore. A special package for suicide prone districts of Maharashtra, Andhra Pradesh, Karnataka and Kerala has been implemented. The minimum support prices of most agricultural commodities have been enhanced substantially over the last six years. It was ensured that fertilizer prices did not increase during the same period. We have in fact reduced the prices of complex fertilizers in 2008 in order to rationalize nutrient use. The increase in MSP of cotton has come as a great boon for cotton production in Vidharba and other cotton growing regions of the country. It has been said that the loan waiver scheme has not helped farmers and it has only helped banks. Nothing can be farther from the truth. It is surprising that we forget that nearly Rupees 70,000 crore, that was recoverable from farmers, has not been recovered. It should also be borne in mind that owing to defaults in repayment farmers would not be eligible for fresh credit. We have ensured the flow of fresh credit to the farm sector. During 2008-09 against a target of Rupees 2,80,000 crores the total credit flow to agriculture was Rs 3,01,582 crore. During this year we have a target of disbursing Rupees 3,25,000 crores and so far Rupees 2,18,202 crore have already gone to the agricultural sector. We have accorded very high priority to the welfare of minorities. We have accepted most of the recommendations of the Sachar Committee and this House has been informed of the action taken on them. We have launched special programmes aimed at social, economic and educational development of minorities. Three new scholarships schemes have been started and are under implementation. We expect more than 40 lakh students to benefit from these schemes in the 11th Plan. At least 30 % of these students would be girls. The new 15 point programme aims to ensure that at least 15% of benefits in certain schemes flow to minorities, and the schemes for minority welfare are being closely monitored. Under this programme additional school rooms, drinking water supply schemes, anganwadi centres and houses are being constructed for the minorities. To improve the access of minorities to bank credit, we have set the target that at least 15% of the priority sector lending will flow to them. During 2008-09 more than Rs 82,000 crore of bank credit, under priority sector lending, went to the minorities. This represents nearly 12% of the total priority sector lending. We hope to improve on this in years to come. Minorities have not been represented adequately in the Government services. We have taken steps to correct this situation and as a result the share of minorities in Government jobs has increased over the past three years. Madam, some Members have raised the issue of rights of tribals over forests. We are making genuine efforts together with the State Governments to ensure early disposal of claims and distribution of titles under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forests Rights) Act. I have also requested the Chief Ministers of concerned States on three occasions to take all measures necessary to accelerate the process of implementation of the Act and to ensure expeditious distribution of title deeds to all eligible claimants. This was reiterated during the Conference of Chief Ministers and State Ministers held in November 2009 to review the implementation of the Act. The Ministry of Tribal Affairs is closely monitoring the progress in this regard. Madam, some Members have expressed concern over the implementation of the National Rural Employment Scheme. Let me say that this is a scheme which has the potential to change the face of rural India. To improve its impact we have initiated measures to bring in greater transparency and accountability. An ombudsman scheme for setting up an independent grievance redressal mechanism at the district level has been formulated and States are in the process of setting district ombudsmen. Social Audits by gram sabhas have also been taken up. Details of job cards, muster rolls and works undertaken have also been placed in the public domain. A scheme for independent monitoring by eminent citizens has been formulated. Efforts will to be made to continue to improve the implementation of this revolutionary scheme. Advaniji had raised the issue of black money deposited in foreign countries. The Finance Minister had written to Shri Advani in May 2009 providing information about the action taken. Subsequently, we have moved further in the matter. Twenty countries and jurisdictions have been prioritized for entering into agreements regarding exchange of information and assistance in the collection of taxes. Negotiations have been completed with the Bahamas and Bermuda, and steps are being taken for signing of agreements. We have also approached Switzerland for renegotiation of our tax treaty, so that we can have access to bank information. Negotiations were held in November 2009, and the matter is being pursued for finalizing a new protocol, through which we will be able to obtain information in specific cases. India is an active participant in global fora for improving transparency and exchange of information on tax matters. Advaniji had also raised the issue of One Rank One Pension to ex-servicemen. He has stated that the commitment I made in my last year's Independence Day speech and Finance Minister’s promise in his budget speech of July 6, 2009 have not been honoured. This is not correct. The factual position is that we had constituted a Committee under the Cabinet Secretary to look into the issue of One Rank One Pension and other related matters. The Committee did not recommend One Rank One Pension. But whatever recommendations the Committee made to substantially enhance the pensionary benefits of persons below officer rank and commissioned officers were accepted by the Government and this is what I had stated in my Independence Day speech. The recommendations which have been accepted cover what the Finance Minister had promised in his budget speech of 2009. Of the seven recommendations that the Committee made, five have been implemented. The two recommendations which have not been implemented will be implemented very soon. Madam, I share the concern of Hon’ble Members about the need for electoral reforms. I do not think there is any dispute regarding the need for electoral reforms. Unfortunately, we do not have the same degree of unanimity on the manner in which to go about it. It has been our accepted position, and also the accepted position of previous governments, that electoral reforms should be brought about only by broad-based political consensus. The recommendations of the Election Commission regarding electoral reforms and other proposals received by us are presently under consideration of the Standing Committee of Parliament. We hope that the Committee would be able to recommend measures which should find support in this House across the political spectrum. We introduced the Women’s Reservation Bill in the Rajya Sabha in May, 2008. We have already considered the Report of the Standing Committee of Parliament on this bill. It will be our endeavour to bring the Bill before Parliament in this very session. I sincerely hope that Hon’ble Members would support the Bill, as it would be the strongest affirmation of our commitment to the empowerment of our women. Madam, I should say a few words about foreign policy. The Government’s foreign policy has been based on national consensus and full adherence to the principles and objectives laid down by the founding fathers of our Constitution. The foreign policy that we pursued in the first term of our Government, and on which we have built upon in the second term, has yielded solid dividends. India’s standing in the comity of nations has never been higher. In the troubled world that we live in, there is respect for India’s role as a force of moderation, reason and stability. The resilience of our democracy, our commitment to pluralism and secularism and the strength of our economy have enhanced our standing in the world. The situation in our neighbourhood is a matter of high priority for us. We have had very intense and substantive interactions with our neighbours in the last nine months. Several Members have voiced their concerns over the situation in Pakistan and the terrorism that is emanating from there against India. The government fully shares these concerns. We are taking all necessary steps to strengthen our internal security and defence capabilities. Government has kept Parliament fully informed at every stage of our policy towards Pakistan. I had made a detailed statement on our approach towards Pakistan in this august House on 29 July, 2009. The External Affairs Minister briefed the House on the last round of Foreign Secretary level talks in February. Our policy towards Pakistan is consistent, cautious and realistic. I have never believed that the channels of communication with Pakistan should break down. Even at the height of the Cold War, the Americans and the Soviets used to speak to each other. The chances of miscalculation can only increase in an environment of no contact. I therefore personally conveyed our concerns to President Zardari when I met him in Russia and later to Prime Minister Gilani at the NAM Summit last year. I had made an offer of talks on humanitarian and other issues in October last year during my visit to Anantnag. The decision to resume talks at the Foreign Secretary level is not a sudden decision but a calculated one based on weighing all the costs and benefits. The fact of the matter is that the rest of the international community is talking to Pakistan. So, our not talking to them is not going to isolate them. We have made our point strongly but we cannot wish away the problem by not talking to them. Dialogue is the only way forward for civilized countries to resolve their problems. But it is equally true that for any meaningful dialogue to proceed, the terror machine has to be controlled by Pakistan even if non-state actors are at work. I have said so in Parliament a number of times and that remains our consistent position. We have left Pakistan in no doubt about our concerns and our expectations with regard to the actions Pakistan must take against the terrorist groups operating on Pakistani soil and targeting India. Pakistan must fulfill its assurances that it will not permit any territory under its control to be used to support terrorism in any manner. Madam, some Hon’ble Members have referred to my discussions in Saudi Arabia on Pakistan. Saudi Arabia is also affected by terrorism and this was one of the subjects that came up in our discussions. I discussed India-Pakistan ties in this context. I mentioned to the Saudi leadership, as I have to other world leaders as well, that all problems between India and Pakistan can be resolved through meaningful bilateral dialogue, if only Pakistan could be urged to take a reasonable attitude in dealing with those terrorist elements who target our country. I wish to reaffirm to this House that no offer was made seeking mediation. We do not need any mediation. We are talking directly to Pakistan. Advaniji said that I acted under US pressure. I think we do a disservice to any Government and Prime Minister of this proud country if we say that such fundamental matters of national security and foreign policy were based on anything but our supreme national interest. I have had many discussions with President Obama since he took office. I categorically state that not once has he sought to pressurize India into taking one position or the other. On the contrary, he has always expressed understanding of the positions we have taken from time to time. I would urge the Opposition not to spread disinformation on sensitive aspects of our foreign policy. Let me say that we do not wish to see the involvement of foreign powers in South Asia. Whatever our problems, we must learn to talk to each other and to solve our problems in a peaceful manner using our own creative genius. In Afghanistan, our assistance has received widespread support among the people of Afghanistan. The entire nation was outraged by the most recent brutal attack in Kabul on February 26th which has led to the loss of 7 innocent Indian lives. These Indian nationals were in Afghanistan on a mission of goodwill and friendship helping to construct the peaceful and democratic Afghanistan that our Afghan friends desire. We condemn this cowardly act. I wish to assure this House that such acts will not bend the will of the people of India. President Karzai had telephoned me and I have requested him to ensure the safety of all Indians. I assured him of any support and assistance that may be required. We are closely monitoring the developments with regard to Afghanistan and we will assist the people of Afghanistan in securing their legitimate right to determine their destiny in the manner they chose without outside interference. Madam, Joshiji made some comments about India-China relations. Let me say China is our important neighbour, with whom we have a comprehensive and multi-sectoral relationship. We wish to build upon the achievements so far so as to create a partnership that is mutually beneficial. We are convinced that good relations with China are in the interests of both countries and will contribute to the peace, security and stability not only of the Asia-Pacific region but also of the world. We are both committed at the highest level to maintain peace and tranquility on the border pending the resolution of the border question. This is a complex matter which will take time to resolve. I had an excellent interaction with Prime Minister Wen Jiabao in Copenhagen and our cooperation in the area of climate change is a shining example how our two countries can work together on issues of global importance and those which impinge on the future of our two peoples. In Sri Lanka, the conclusion of military operations against the LTTE has opened opportunities for finding such a lasting political settlement, acceptable to all communities, including Tamils, within a united Sri Lanka. We have and we will continue to contribute to the humanitarian and rehabilitation efforts of the Sri Lankan Government and to the long- term reconstruction of areas that have been affected by the military conflict. Our assistance package of Rs.500 crore for immediate relief, resettlement and reconstruction is under implementation. We have taken several steps to diversify and broad-base our relations with Bangladesh. A major milestone in this respect was the visit of Prime Minister Sheikh Hasina to India in January 2010. During that visit we put in place a comprehensive framework of cooperation for development of our ties, which includes a renewed commitment by both sides to actively cooperate on security issues. We have provided a line of credit of 1 billion US dollars for a range of projects in Bangladesh which we intend to follow up vigorously. The Government of Bangladesh has reassured us that they will not allow their territory to be used for activities inimical to India. We have welcomed some of the steps they have recently taken in this direction. Our country is passing through a difficult phase. Security and stability are the need of the hour. Political parties can differ on various issues but I do believe it is important for us to face challenges in a united manner. I seek the cooperation and support of all sections of this House. Let us not allow narrow partisan considerations to come in the way of effective governance. The people of India expect the Treasury and Opposition benches to engage constructively and ensure safety, security and prosperity for our citizens. Thank You.” | 