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Our priority is to control inflation: Manmohan

Special Correspondent

Steps taken so far will enable the country to return to a regime of moderate inflation in eight to ten weeks

— PHOTOs: RAJEEV BHATT

PROGRESS REPORT: Prime Minister Manmohan Singh and United Progressive Alliance chairperson Sonia Gandhi with leaders of the alliance partners at the release of the government’s report card, in New Delhi on Thursday.

NEW DELHI: Control of inflation has been a priority for the United Progressive Alliance government and the steps taken so far would enable the country to return to a regime of moderate inflation in eight to 10 weeks, Prime Minister Manmohan Singh said here on Thursday.

Releasing the UPA’s Report to the People, 2004-2008 here, Dr. Singh said the government had made determined efforts to accelerate the pace of development while maintaining price stability.

“An upward pressure on prices since 2007 has been wholly on account of steep increase in global commodity prices, especially oil and food prices. It has also affected inflation expectations.”

Pointing out that sharp escalation in global oil prices, the price of steel and the price of food crops had impacted the domestic economy, he reiterated the measures taken by the government to meet the challenge and added that a normal monsoon and “public recognition” of the government’s determination to reverse the spurt in inflation should help alter the expectations.

CPI(M) general secretary Prakash Karat with Sitaram Yechury and Brinda Karat at the function.

On the issue of terrorism on which the UPA, and he personally, had come under attack recently from the BJP, Dr. Singh said the government had taken firm measures to improve the overall internal security situation and was ever vigilant against any threats to the unity and integrity of our republic. “We will not hesitate to take resolute and firm action against such forces wherever necessary and will work with States to counter these threats.”

Asserting that the UPA government had put in place “an architecture for inclusive growth,” the Prime Minister said Indian economy was on a growth trajectory “which can keep growing at eight to nine per cent.”

“The presentation of the report has set a new standard for accountability and transparency,” said the foreword by Dr. Singh in the 63-page Report.

Emphasising the government’s priority for revitalising agriculture, empowering farmers and modernising the rural economy, he said the terms of trade for farmers had improved, investment had gone up in irrigation, farm research and rural infrastructure.

Together with the Rs. 25,000 Rashtriya Krishi Vikas Yojna, the National Food Security Mission and the Rs. 60,000 crore Farmers Debt Relief Package this would facilitate the turnaround of the agriculture economy.

The Prime Minister stressed the increase in public investment in social welfare programmes and education and talked about the universalised National Rural Employment Guarantee Programme as a “major contribution to softening the harsh edges of extreme poverty.”

“The UPA government has worked hard to make our growth process socially inclusive and regionally balanced,” Dr. Singh said, adding that India today enjoyed an “enhanced profile” in the international arena as a model of stable, liberal, plural and secular democracy and a rapidly growing economy.

He said the UPA could not remain complacent as “we enter more uncertain times, as the global economy slows down and global economic and political trends posed new challenges for us.”

The Prime Minister’s address was silent on the India-United States nuclear agreement.

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