Thaindian News

New Delhi, Mar 31 (ANI): Stating that inflation has been a problem in the recent months, the Prime Minister, Dr. Manmohan Singh, on Thursday said he is hopeful of seeing lower levels of inflation in the coming months.

“In recent months, inflation and food inflation in particular, has been a problem. We want to deal with it in a manner that the growth rhythm is not disturbed. I believe we have pursued prudent fiscal and monetary policies to strike the right balance between growth and inflation. I am hopeful of seeing lower levels of inflation in the coming months,” said Dr. Singh in his address at the Council on Trade and Industry meeting.

Dr. Singh said that tax reforms, especially the introduction of a Goods and Services Tax, are a very important part of the agenda.

“So also are financial sector reforms. We are also committed to major reforms in education and skill development. We have started a program to raise resources by sale of equity in public sector enterprises. Legal reforms aimed at reducing delays are another key priority,” he said.

“We need to develop long-term debt markets and to deepen corporate bond markets. This in turn calls for strong insurance and pension sub-sectors. Some of the reforms needed, especially in insurance, involve legislative changes. We have taken initiatives in this area and will strive to build the political consensus needed for these legislative actions to be completed,” he added.

Dr. Singh further said that there is a need to improve futures markets for better price discovery and regulation.

“We also need to remove institutional hurdles to facilitate better intermediation,” he added.

The Prime Minister also stressed upon the need to deal effectively with the consequences of rising oil, food and commodity prices, and political upheavals in many countries and unprecedented natural disasters in various parts of the world.

“Manufacturing remains an area where we need to improve our performance. The Department of Industrial Policy and Promotion and National Manufacturing Competitiveness Council are working together on a comprehensive manufacturing policy, which would seek to improve industrial infrastructure and the business environment, and encourage development of appropriate technologies and human resources,” he said.

“We have made a conscious effort to strengthen international diplomacy and aid our industry in their businesses internationally. It is a matter of great pride for the country that many of our industry houses are recognized names throughout the world,” he added. (ANI)