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Montek dismisses Greenspan’s remarks

MUMBAI: A lot is being done for rural areas to make growth more inclusive, Deputy Chairman, Planning Commission, Montek Singh Ahluwalia, said.

“Though I have not read Alan’s book, I do not agree with him. We are doing a lot to make growth more inclusive... Our economic scenario is good,” Dr. Ahluwalia said, dismissing the observation of Alan Greenspan, former Chairman of the U.S. Federal Reserve, that the UPA Government headed by Prime Minister Manmohan Singh is not doing enough on farm reforms.

“We are growing at 8.5-9 per cent. We have managed an average growth of 8.5 per cent for last five years, which we never had before and the inflation rate is below four per cent,” he said on the sidelines of a Bombay Chamber of Commerce function here on Friday.

“If the reform process continues, we will be able to touch the 10 per cent growth rate by the end of the XI Plan,” Dr. Ahluwalia said.

“The XI Plan has a lot for those people living below the poverty line, including farmers and labourers. We are confident that the growth process we are witnessing today is more inclusive and will do more for the poor than in the past,” he said.

He was responding to the observations made by Mr. Greenspan in his latest book, “‘The Age of Turbulence — Adventures in a New World,” where he has reportedly criticised the Indian Government on several issues, including labour reforms.

Dr. Ahluwalia said programmes like the National Rural Employment Guarantee Scheme and other measures would help in making growth more inclusive.

He said that employment recently had grown faster than the earlier years. The unemployment rate had also increased slightly.

“But it is not true that employment is not being generated. Between 2000 and 2004, there has been an upswing in the employment rate. Unfortunately, we do not have the data from 2005 onwards, which will be available only after two to three years down the road,” the Planning Commission Deputy Chairman said.

On the issue of alleged discrepancies in the disbursement of the Prime Minister’s relief package for farmers in Maharashtra, Dr. Ahluwalia said, “I believe the Government has identified some of the problem areas and are working towards addressing them.” He said that some programmes of the Government were not effective and that the shortcomings were rectified by taking corrective steps. — PTI

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