'UPA wants India to move rapidly into ranks of middle-income countries': Sibal

Last Updated: Tue, Oct 09, 2012 06:20 hrs

Communications and IT Minister Kapil Sibal has said that the UPA Government is committed to the promises made to the people and wishes that India moves rapidly into ranks of middle-income countries despite the severe global crisis.

Talking to media here yesterday, Sibal said that Congress-led UPA government believes rapid and broad based economic growth is essential.

"The UPA government, as you know believes that rapid and broad based economic growth is essential, In fact is an essential condition for inclusive development. Since 2004-2005, our economy has enjoyed an unprecedented growth rate of around 8.5 percent, despite the severe global crisis that have impacted the global economy," he said

"Despite the crisis we are committed to deliver our promise to the people of India and we wish to move rapidly into the ranks of the middle income countries," he added.

After years of policy inertia that hit investments, slowed economic growth to a near three-year low and put India's investment-grade credit rating in peril, the Congress-led ruling coalition is on a reform overdrive.

In the last few weeks, the government has increased the price of heavily subsidised diesel, opened up the retail sector to global supermarket chains, allowed foreign airlines to buy stakes in local carriers and proposed raising the bar on foreign direct investment in insurance firms.

While the recent reforms have helped financial markets rally and boosted investor sentiment, they may not be good enough to lift GDP growth, which slowed to 5.5 percent in April-June.

The investment rate has fallen to 32 percent of GDP from 38 percent in 2007/08. The fiscal deficit widened to 5.8 percent of GDP last year from 3.5 percent in 2007/08.

Sibal further hailed the UPA's strategy in excelling in telecommunication and information technology.

"The UPA government has been emphasizing the importance of telecommunication and information technology as an essential factor in the growth story of India. India has demonstrated enormous strides in telecom and I don't think there is any other country in the world where the tariffs for ordinary people are as low as they are in India and the penetration of telephonic in India is moving forward at enormous stride. We have almost a billion mobile phones in India," said Sibal.

Asserting that India has almost a billion mobile phones; Sibal said that India has registered enormous strides in telecom sector by offering the lowest tariff to people of India than anywhere in the world. (ANI)

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