4th National Convention: Economic Resolution

New Delhi, 20th December 2009

The Global economy is experiencing a major meltdown and is the biggest challenge before all of us.  However, the NCP strongly believes that the Indian Economy has the inherent strength to withstand these challenges and come out successfully.

In spite of recession our economic growth in GDP terms for 2008-09 is @ 6.5%.  Our GDP growth in July/September @ 7.5% has surprised even the international observers.  However, at NCP we do not believe in judging the economy only in terms of GDP growth.  We believe that any growth in economy should percolate to the people.  We believe that prosperity should not be restricted only to few but should be available to the lowest strata of society.  “Bahujan Hitaya Bahujan Sukhaya” is our motto - keeping this goal in mind we base our economic policy resolution in the right direction. 

The NCP will endeavour to address India’s economic issues on 7 major fronts :
(i) Expanding the Services Sectror;
(ii) Equitable Industrial Development;
(iii) Upgradation and Modernization of the Farm Sector;
(iv) Making Indian Exports more competitive;
(v) Infrastructure Development;
(vi) Energy Security;
(vii) Social Security.

(i)  Expanding the Services Sector :  With the expanding role of the services sector and the large educated and trained youth in the country, the only way to reduce unemployment and give boost to trade, commerce and industry, India’s services sector must be given greater emphasis since it contributes more than 50% of India’s GDP.  Special attention must be given to IT, banking, insurance, financial services as well as the huge potential in retail, distribution and other allied services. 

(ii)  Equitable Industrial Development : India has seen major industrial development from the 50s to 80s.  However, in the 90s,  the industrial sector of the country did not see major progress.  As a result, unlike in the past where major industries were situated in rural areas, spread across all over the country.  The situation now has changed.  The services sector has brought large parts of the population to urban areas for employment resulting in an inequitable growth.  Major emphasis should now be made to see that new industries are set up and they are located across the length and breadth of the country.  Major industries not only give employment but change the economic profile of the vicinity in which they are set up.  It is heartening to note that major investments are  now happening in the automotive, white goods, power, cement and engineering sectors. 

(iii) Upgration and modernization of the Farm Sector : With majority of the population living in rural areas and dependent on agriculture, we have to ensure that the ratio of agriculture to GDP must increase.  The farmer must get higher price for his produce, farm credit for modernization and upgradation and very importantly, a large part of resources should be spent on irrigation and effective collection and distribution network for farm produce must be established.  Perishables should have a good storage and supply chain.  It is unfortunate that a large part of the farm produce either gets wasted or does not get a remunerative price due to lack of logistical support.  The loan waiver scheme propagated by the UPA Government under the leadership of Dr. Manmohan Singh and our Party President, Shri Sharad Pawar, have definitely enthused the farming community and the fact that agricultural credit has increased fourfold  from 80,000 cr. annually in 2004 to almost 3 lakh crores this year, has ensured  the growth in the farm sector. The annual growth in agriculture which was about less than 2% annually, has now touched almost 4%.  In spite of this, we are expected to have a bumper collection of food grains in our country.  Some of the reasons for rising prices can be attributed to this year’s climatic conditions, but we are confident that the policies of the Government will ensure that rising prices in certain essential food commodities will definitely be brought under control.

(iv) Making Indian Exports more competitive :  India’s exports have done exceedingly well in the last few years and the fear of India being marginalized due to China’s aggressive exports have now largely been contained.  India’s exports this year have in spite of global recession, has crossed 200 billion US dollar mark, which itself is a great achievement.  This leads to India’s balance of payment being under control and forex reserves also reaching record levels.  More exports also means that we are creating more jobs and on the other hand offsetting the impact of import of country’s large volumes of petroleum products. 

(v) Infrastructure Development :  India’s infrastructure building programme needs to be given a right boost.  Power, roads, ports, railways, airports, irrigation, sanitation and health care, all need to be given a big push as this will not only develop the country,  will bring people closer, but also create huge economic activity and large scale employment opportunities for our people.  This initiative will truly be a redefining moment for our country.  The UPA Government has taken various initiatives in this regard.

(vi) Energy Security :  No country can truly be self-reliant until and unless it ensures an energy security for itself.  Energy means not only power but petroleum and gas as these are life lines of the nation.  India must exploit its natural resources to the maximum and make all out efforts for new discoveries as not only would they fulfill the requirement of industries and households but also cleaner fuels for the production of power.  This will also lead to major economic and industrial development combined with new employment opportunities. 

(vii)  Social Security :   While our country makes progress we cannot ignore the fact that still a majority of our population is living below the poverty line and still dependent on agriculture or labour.  Hence, the Government must continue to support agriculture and subsidise the poor through food and other subsidies.  We must continue to control rising prices through enhanced Government intervention, at least for the weaker sections of the society.  The NREGA has shown that it can be a very important means to provide employment in rural India and be linked to development.  The NCP is fully committed to the development and welfare of the SC/ST, OBC, women and minority development.

The NCP advocates the streamlining of the Direct Tax Code as well as replacing the existing Service Tax by a new Goods and Service Tax.  Such a code have three criteria :
(i)   The law should be simple;
(ii)   It should be uniform; and
(iii)  It should bear in mind the peoples capacity to pay.

In spite of our best efforts, we still have daunting task of eradicating poverty, illiteracy and unemployment.  Natural calamities continue to take a heavy toll.   In the light of these challenges, the NCP under the leadership of its National President, Shri Sharad Pawar, is fully confident of achieving the economic goal.  Thus it will support the UPA Government in following the economic policies which would eventually lead India in the 21st Century as an economic super power as well as do justice to the millions of under privileged.