The UPA government patted itself on its back for achieving 8.5 per cent growth between 2004-05 to 2010-11 despite a severe global financial crisis. However, it acknowledge that high inflation has been a major challenge for the UPA government in its second term.
“The Indian economy is estimated to register robust growth during 2010-11, with growth in gross domestic product (GDP), at factor cost, at constant 2004-05 prices, touching 8.6 per cent,” said the annual report card released on Sunday by the UPA government on the completion of its two years. The report card said that policy for foreign direct investment has been made more investor friendly by the government through a process of continuous rationalisation and simplification of rules.
On inflation, the report card said that a major concern in the domestic economy has been food price inflation during the year 2010-11. “The prices of protein sources such as milk, eggs, meat and fish continue to remain high reflecting structural demand supply imbalances,” said the report card.
It said that maintaining price stability remains a high priority for the government. Prime Minister Manmohan Singh said the government’s immediate challenge is to sustain the growth process, while keeping inflation under check. He said that government must reduce the fiscal and revenue deficits, increase public investment, and cut down on wasteful subsidies.
The report card said that the government is committed to harnessing nuclear energy for sustainable economic growth while ensuring the highest levels of safety of the nuclear power programme.
“In the light of the nuclear accident in Fukushima in Japan, technical review teams for assessing safety systems of nuclear plants in India have been set up. The Atomic Energy Regulatory Board will be strengthened and made an autonomous and independent regulatory authority,” it added.
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AI in difficult phase, says PM
Age Correspondent
New Delhi
May 22: Troubled national carrier Air India, which recently witnessed disruption of services following a pilots’ stir, came in for mention by Prime Minister Manmohan Singh in the UPA report card, with the PM noting that it was passing through a “difficult phase”. The PM, however, attributed this to global recession and high cost of operation. “Air India is passing through a difficult phase as a result of global recession and high cost of operation,” he said.