Reversing economic slowdown is our first priority: PM

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SME Times News Bureau | 28 Dec, 2012
Describing the global slowdown as biggest challenge, Prime Minister Manmohan Singh on Thursday said that reversal of the downturn is the first priority of his government.

"The global slowdown, combined with some domestic constraints, has meant that our growth has also slowed down. Our first priority must be to reverse this slowdown. We cannot change the global economy, but we can do something about the domestic constraints which have contributed to the downturn," said Dr Singh in his addressed at the 57th meeting of the National Development Council in New Delhi on Thursday.

Singh cautioned that "business as usual" policies will not be sufficient to achieve the scaled down growth target of 8 percent.

"While these developments indicate the strengths of our economy, it is also true that the current economic situation is difficult. The continuing crisis in the global economy has reduced growth everywhere. It is expected to be zero in the Eurozone and Japan and emerging market economies have also slowed down," said PM.

The Planning Commission for the second time proposed reduction in the average annual growth target for the 12th Plan. It was first scaled down from 9 percent to 8.2 percent and now to 8 percent.

Singh said, "The most immediate problems we need to tackle are the implementation problems affecting large projects, including particularly power projects, which are stuck because of delays in getting clearances and fuel supply agreements. We have taken a number of steps to deal with this problem, including the establishment of a new Cabinet Committee on Investment under my Chairmanship."

"I am confident these steps will have a positive effect, but their full impact will take time," he added.