The Hindu Business Line : PM pitches for further reforms

The five challenges
Revitalisation of rural economy
Improved delivery of essential public services
Improved management of urban areas
Preparing financial system for greater inclusion
Regulatory culture for cost-effective private investment in infrastructure

Dr Manmohan Singh

New Delhi , Dec. 17

The Prime Minister, Dr Manmohan Singh, on Sunday outlined five major challenges that the country would have to overcome over the next decade to achieve fast and sustained growth.

In his address at the Golden Jubilee Celebrations of the National Council of Applied Economic Research (NCAER) here today, Dr Singh said that it would be wrong to assume that major development challenges have been solved and that the Indian economy could now effortlessly coast towards making the country a developed one.

He identified revitalisation of the rural economy, improved delivery of essential public services, improved management of urban areas, preparing the country's financial system for greater inclusion and increased global integration and establishing a regulatory culture to facilitate cost-effective private investment in infrastructure as the five challenges.

"On each of these (five challenges), our Government has taken several steps, but we have to do more."

He also released the `India Rural Infrastructure Report', which was sponsored by the Sir Ratan Tata Trust and prepared by NCAER.

The Prime Minister said that the country has made considerable progress in many areas over the last 15 years and that the circumstances today were favourable for sustained, rapid and equitable growth of the economy.

He added that the economic environment facing the private sector has been transformed and the results are evident.

Dr Singh also said that the responsiveness of the Indian private sector to economic liberalisation and increased international integration has been generally satisfactory, and has imparted tremendous resilience to the economy.

With regard to public-private partnerships, for which there has been a clear national commitment, the Prime Minister said that such investments would only materialise if there is confidence in the independence and stability of the regulatory regime.

"We have made a start in this direction, but establishing a credible regulatory culture will take more effort and time."

Referring to the challenge of revitalisation of the rural economy, Dr Singh said that agricultural activity needed to be redirected to higher-value activities so that small holders can earn a decent income even as non-farm employment supports farm income.

"Improved rural connectivity and economic and social infrastructure will be critical in this effort, as will removal of barriers to domestic trade."

On improved delivery of essential public services, the Prime Minister said that the poor are those most deeply affected by poor delivery of basic education and health care.

"Individual States need to experiment with a range of models for delivering these services, as well as increased monitoring by local communities."