Lack of political consensus hurting economic growth: PM

Prime Minister Manmohan Singh admitted  on Independence Day that lack of political consensus on many issues was the reason why India was not able to achieve rapid economic growth.

''The time has now come to view the issues which affect our development processes as matters of national security,'' he said while addressing the nation from the ramparts of the Red Fort in Delhi on the occasion of Independence Day. ''If we do not increase the pace of the country's economic growth, take steps to encourage new investment in the economy, improve the management of government finances and work for the livelihood security of the common man and energy security of the country, then it most certainly affects our national security.''

Singh called on all sections of society to make efforts to resolve problems ''so that our economic growth and the creation of employment opportunities in the country are again speeded up.'' He also referred to ''domestic developments which are hindering our economic growth,'' but did not spell them out.

Last year, GDP grew by 6.5 per cent and ''this year we hope to do a little better,'' he said. Noting that the pace of economic growth has come down in all countries – with Europe estimated to grow at 0 per cent this year – Singh said India too had been affected adverse external conditions.

Admitting that a bad monsoon this year could pose difficulties in controlling inflation, he said his government had taken measures to deal with the situation. ''In districts where there has been a deficit of 50 per cent or more in the rainfall, diesel subsidy is being provided to farmers by the government,'' said the prime minister. ''Seed subsidy has been enhanced. Funds available under the central scheme for fodder have been increased. Our effort is to ensure that people do not face difficulty due to shortage of seeds, fodder or water in any part of the country.''

Singh vowed that his government ''will work hard for India's rapid economic growth and for shielding the country from the effects of the global economic slowdown. I promise that we will work hard for creation of new employment opportunities for our young men and women living in villages and cities.''

He said ''this period of difficulties'' will not last long. ''Our government believes that the difficult problems which India faces can be resolved only with the cooperation of the common man,'' said Singh. ''It will be our endeavour that in the coming time, still more people help us in tasks like removal of poverty, illiteracy and inequality.'' (See: Highlights of Prime Minister Mnmohan Singhs's speech on 15 August 2012).