CII Annual General Meeting and National Conference 2013 -Wednesday April 3,2013

Prime Minister Manmohan Singh urged captains of industry to be positive and not get “swamped by a mood of negativism.” He told them to take in their stride the deficiencies that afflicted a democratic government.

Prime Minister Manmohan Singh said a strategy had been devised to prove the prophets of gloom wrong and retrieve the economy from its temporary downturn. The limitations, however, were that one had to wait for the global economic situation to return to normal and also learn to live with the current account deficit (CAD) in the balance of payment with exports likely to remain weak. 

Prime Minister Manmohan Singh promised to deal with the constraints to restore macro economic balance, revive the investment environment and initiate reforms in the FDI, financial, power and fuel sectors and cut down on subsidies (including kerosene), some of which would be rolled out this month itself.

As a first measure towards cutting down fiscal deficit, the process of fiscal stimulation would be reserved, which, he said, was necessary to ensure availability of savings for investment, instead of being absorbed by government deficit.

But he was categorical about rationalising subsidies, particularly fuel — the next in line being kerosene in “due course of time.” 

To boost foreign investment, the government would review the FDI policy comprehensively in the next few months

Prime Minister Manmohan Singh said a 13-year rift between the Ministries of Power and Coal had been bridged, paving the way for installation of the Rs. 14000-crore, 2000-MW North Karanpura power station in Jharkhand by NTPC.