now slowed down below 5 percent… Today most of the large economies in the world are ‘reviving’, the Indian economy facing the problem of ‘surviving’,” he said at the same meeting.
In a welcome comment, Singh’s panacea for the ailing economy included developing the bond market to attract investments into infrastructure, boosting exports to curb the CAD and encouraging the manufacturing sector to enable it to contribute at least 20 per cent to the GDP.
Singh also promised novel ventures such as farmer markets and a special working committee on organic farming.
Devendra Kumar Pant, chief economist at India Ratings said, “A number of steps have been taken in each of these areas but there sure needs to be a firm roadmap to revive growth”. For instance the National Manufacturing Policy in any case targets to increase contribution of manufacturing to GDP to 20 per cent so the details will have to be filled in, he said.
The Indian economy slowed to a decade low of 5 per cent in FY13 and GDP growth is likely to remain muted this fiscal too after registering a 4.6 per cent growth between April and September 2013. Manufacturing activities now account for only 14.6 per cent of value add for the economy this financial year.
The BJP resolution has also punched holes in the UPA government claim that it has provided the best deal to the farmers. With data from the Commission for Agricultural Cost and Prices the party has attempted to show that rising minimum support prices have been nullified by faster rising input costs.
So it concludes that farmers are earning less from their efforts. The margin of profit has decline for both paddy and wheat cultivation has shrunk to 8.5 per cent and 13.91 per cent in FY13 from 34.77 and 33.17 in FY11, the document shows.