In his address to the joint sitting of Parliament, marking the beginning of the Budget session President A P J Abdul Kalam commended the work done by Dr Manmohan Singh's government and said that the nation's economy is on the move and the overall development growth rate could cross 8 per cent in 2005-2006 as compared to 2004-2005 when the growth rate was 7.5 per cent.
Rolling out the reform agenda ahead of the Budget, the President on Thursday said the government will create a common market for agriculture and step up infrastructure development in ports, roads, power, airports, telecom and railways to sustain high growth.
Promising to keep the price line at a modest level despite surging global energy prices, Kalam said the United Progressive Alliance government is committed to efficient management of public utilities and enterprises in the pursuit of reform.
"This is probably a precursor to better times to come in the future. The government's prudent and judicious management of the economy has helped it to perform exceedingly well despite unprecedented rise in oil prices which was of immense satisfaction," he said.
The renewed optimism of the people is visible in the savings rate which now over 29 per cent and the investment rate which is near 31 per cent, the President said.
The President who arrived in Parliament accompanied by his bodyguards till the main gate, was received by the Speaker of Lok Sabha Somnath Chatterjee, chairman of the Rajya Sabha Bhairon Singh Shekhawat and Prime Minister Dr Manmohan Singh.
The president began his speech in Hindi by greeting the Members of Parliament.
Kalam's commendation was a great relief for Finance Minister P Chidambaram who has drawn flak from both the Opposition and the Left parties for failing to keep prices under check.
Rural welfare schemes
Voicing the government's determination to address the concerns of aam aadmi (common man), Kalam said highest priority would be given to welfare of farmers and development of rural economy.
Apart from increasing farm credit by 60 per cent, a revival package for long-term cooperative credit structure is being studied, besides implementing a revival package for short-term rural credit structure involving Rs 14,000 crore (Rs 140 billion) as recommended by the Vaidyanathan committee.
"My government is committed to having a common market for agricultural produce so that farmers get better farm-gate prices. This is being done by making warehouse receipts negotiable instruments, amending the Essential Commodities Act, working with states to amend Local Agriculture Produce Marketing Acts and expanding food supply and storage chain," the President said.
A National Rainfed Authority is being established to look into all dimensions of managing water resources and the government has begun work on all elements of interlinking of peninsular rivers starting with work on two such links, he said.
He also said that the government was in the process of setting up a National Biotechnology Regultory Authority, which will be a nodal set-up for release, import and post-release monitoring of genetically modified crops and seeds.
Apart from strengthening states' seeds testing laboratories, the government proposes to launch National Boidiesel Programme in the next fiscal.
To accelerate economic growth, world-class infrastructure would be developed to make the economy more competitive, the President said.
Infrastructure development
While the public sector would continue to play an important role, necessary policy and regulatory environment would be created to attract long-term private investment in infrastructure.
An action plan for further development of national highways network with an investment of Rs 1,75,000 crore (Rs 1750 billion) in the next 7 years has been finalised and a new model concession agreement has been approved to facilitate public-private partnership in roads.
Aviation, shipping and Raiways
Asserting that a comprehensive civil aviation policy is on the anvil, he said plans are being made for modernisation and development of Kolkata and Chennai airports after commencing modernisation plans of Delhi and Mumbai airports.
Greenfield international airports at Bangalore and Hyderabad have been approved, he said adding a comprehensive plan for planned development for other regional airports is under finalisation.
Regarding modernisation of ports and measures to attract private investment, he said a model concession agreement was being formulated for this purpose.
On railway upgradation, Kalam said the government has decided to build two dedicated high capacity freight corridor at a cost of over Rs 20,000 crore (Rs 200 billion).
The Eastern Corridor would be from Ludhiana to Sonnagar and the Western Corridor from Jawaharlal Nehru Port Trust to Dadri, he added.
Telecom reforms
In the telecom sector, he said the government proposes to put in place a mechanism for vacation of spectrum by existing users in the government to make it available for commercial use in a time-bound manner.
"My government will ensure that manufacturing of electronic and telecom hardware in the country be given a big thrust. New initiatives are being taken to bring semi-conductor manufacturing in India and building a manufacturing hub," he said.
Economy
On Special Economic Zones, Kalam said the task force on petroleum, chemicals and petrochemicals investment regions will evolve a policy framework for development of sector-specific investment regions to attract $10 billion in each locations.
Turning to foreign direct investment, Kalam said the government will create a policy framework that attracted FDI keeping in view the overall national interests.
The government has taken appropriate decisions to rationalise FDI policy with a view to remove unnecessary hurdles and outdated restrictions.
He said the government intended to launch a 10-year National Manufacturing Initiative to make the sector the prime driving force for employment and economic growth.
Emphasis would be placed on labour intensive sectors like textiles and garments, leather and leather goods, food processing, IT hardware and electronics and auto components, he said adding focus attention would be given for the growth of dynamic services sector including software, outsourcing, tourism, education and healthcare.
Turning to the power sector, he said more power projects would be taken up, apart from the five ultra mega power projects with 4,000 mw capacity and revival of Dabhol Power Project.
Additional inputs from PTI
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