Five-year annual growth target of 8% 'ambitious', says PM
Singh said that subsidies on energy products should be limited, with a phased adjustment of prices.
"Unfortunately, energy is under-priced in our country. Our coal, petroleum products, and natural gas are priced well below international prices. This also means that electricity is effectively under-priced," he said.
"Immediate adjustment of prices to close the gap is not feasible, I realise this, but some phased price adjustment is necessary."
He added that early implementation of a Goods and Services Tax (GST), a long- delayed plan intended to replace myriad state and central taxes, was critical to raise the tax/GDP ratio.