Wednesday, June 18, 2008

Indian PM speaks on petroleum products prices

by Jo Black

The Indian Prime Minister, Dr. Manmohan Singh called for a consensus approach within the coalition partners of the UPA government for increase of prices of kerosene, LPG, diesel and petrol.

Inaugurating the 87th Annual General Meeting of ASSOCHAM, Dr. Singh said that the subsidy bill cannot be allowed to rise any further and there is not an adequate margin to fully insulate the consumer from the impact of world commodity and oil price inflation.

Seeking for a wider political consensus, Dr. Singh hinted that the government is no longer in a position to insulate aam adami from price rise of the petroleum products.

He said that Indian economy would continue to grow at over 8% and even more in future as in the last few years, the growth rate on an average has been close to 9%, despite the global slowdown.

Referring to globalization process, the Prime Minister said the globalisation is both an opportunity and a challenge.

While it could pose a threat to the survival of existing forms of production, the liberalization of the economy should be accompanied by state intervention to protect the weak and marginalized sections of society and to help build up their capacity to share in the fruits of development.

In this context, social services like education and health are important as are the processes of skill upgradation of young people.

The challenge is to derive the benefits of globalization, deal with its challenges and provide protection from the threats it poses.

The Prime Minister, however expressed confidence that Indian economy would continue to grow at 8% and above despite global slowdown as it has maintained the economic growth of 9% in last 3 years.

Dr. Singh also expressed concerned about the impact of rising oil prices, rising commodity prices and the growing threat of protectionism from developed economies.

The unrelenting rise in crude oil prices threatens to disrupt the developmental process in oil importing developing countries and can have adverse impact for the global war against poverty.

The Prime Minister hoped that ASSOCHAM AGM will take note of this change in the debate on globalisation.

Two decades ago, even a decade ago, we in the developing were worried about globalization. The voices of protectionism were heard more loudly.

Today, however, it is in the developed economies that such voices are heard.

There is no reversal of roles possible until we are able to create a more equal world, further said Dr. Singh

 

 

 

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