Growth needs rapid industry with the poor on board: PM

“We have to recognise that in a country like ours where the average size of landholding is small, there are limitations to what you can do to improve agricultural productivity. The long-term solution to that problem has to be to take people away from agriculture, to manufacturing, to services and other non-agricultural pursuits.”

In an apparent reference to the row over Special Economic Zones (SEZs), Singh said: “Whether a particular process of industrialisation is leading to loss of availability of land at a pace which has undesired consequences — those concerns have to be taken on board. But I do sincerely believe that my friend (West Bengal CM) Buddhadeb Bhattacharya is right when he says that the time has come in this country to work steadfastly to rapidly industrialise its economy.”

“If we need to industrialise, we need to encourage industries which will be labour-intensive. If certain incentives have to be given, I think, those have to be given. We must recognise that today skilled labour as well as capital are internationally fully mobile. Therefore, our system of incentive has to be competitive enough to attract more capital, both domestic and foreign.”

Defending the SEZ policy, he said: “But this does not mean that everything that is being done is sacrosanct. (External Affairs Minister) Pranab Mukherjee is heading a GoM to review the approach to SEZ to find out if there are any pitfalls in the present policy framework. It will be our intention to redress whatever genuine grievances there may be. If we have made a particular mistake in enacting the particular Act, we do not stand on any formality, we will make necessary corrections.”

But, he said, “the SEZ controversy has given rise to the much due, longer-term debate with regard to the problems of rehabilitation and resettlement of the displaced families from the areas which are taken over for public purposes. I do recognise there is need for a more humane approach, which takes into account all those who suffer as a consequence of land having been taken away from them, and it will be our effort to come up with a more humane rehabilitation and resettlement policy taking into account their needs.”

“We have set in motion a growth process which promises in the years to come, if we remain faithful and steadfast in the pursuit of this inclusive growth process, we will be able to make a significant dent on poverty and unemployment.”

While he spoke of 9% plus growth, he made clear that “in the process of growth, if inflation becomes a problem and that brings agony and hardships for the poorer sections of our society, that also has to be dealt with on a priority basis.”

“Several members have expressed concern about the rise in prices. I do share their concern, But, I am convinced that the measures that we have put in place, both on the demand side and supply, will help us to moderate inflationary pressures in the months to come.”

While the government was trying to curb inflationary pressures “without adversely affecting the strong growth impulses”, Singh said “it becomes difficult to control the domestic prices when international prices of both petroleum products and and food grains are experiencing a rising trend.”

On agricultural productivity, he admitted that “the pace of progress in agriculture in recent years has not been adequate. It falls far short of what we need and that we should do a lot more to accelerate the process of growth of our agriculture.”

“Our government takes very seriously the challenge of near stagnation in our agricultural production in the months that lie ahead. We will work steadfastly to identify the problems as they vary from one part of our country to another. I have also asked Agriculture ministry and the Planning Commission to work out specific regional plans for the development of our agriculture. We are going to call a meeting of the National Development Council specially to focus on the problems of agriculture and what needs to be done to revitalize our rural economy.”

To step up agricultural growth, he listed certain long-term measures: emphasis on irrigation to be laid in the Eleventh Plan, technological breakthroughs to improve dry-land agriculture through the National Rainfed Area Authority, need for expansion of institutional credit to tackle farmers` indebtedness through an expert group.

As a “medium-term” measure, he said “we must evolve a more effective strategy to increase production of food-grains, vegetable oils, pulses and this will be a priority concern during the Eleventh Plan”.

From fixing SEZ to minority plans

Farms alone can’t sustain

• Average size of landholding is small, limitations to what you can do to improve agricultural productivity. The long-term solution has to be to take people away from agriculture, to manufacturing, to services, other non-agricultural pursuits

My friend Buddha right

• Do sincerely believe that my friend Buddhadeb Bhattacharya is right when he says time has come to work steadfastly to rapidly industrialise economy… We need to encourage labour-intensive industries

If error in SEZ, will correct

• Does not mean that everything that is being done is sacrosanct. Pranab Mukherjee is heading a GoM to review the approach to SEZ to find out if there are any pitfalls in the present policy… If we have made a particular mistake… we will make necessary corrections

No leaving out minorities

• I make no apology for identifying minority concentrated districts… to ensure that the minorities do not get left behind and they too get the benefit of the growth process