Prime Minister Manmohan Singh said on Thursday that the Indian economy was expected to grow by over 9 per cent during 2006-07. He also said that the government is ready to change the approach to SEZs, 'if it had made a mistake' and that land acquisition and resettlement has to be done in a humane manner

"This year the growth rate will probably exceed 9 per cent," Singh said replying to the marathon debate on the motion of thanks to the President's address in Lok Sabha.

Emphasising the need for growth, he said "we need to pursue a purposeful strategy so that the growth benefits every one." The prime minister said investment rates have gone up by 34 per cent of GDP while the savings rate has risen to 32 per cent of GDP.

On poverty and unemployment

During the last three years the United Progressive Alliance government had taken several initiatives for alleviating poverty and set in motion an inclusive growth process, Singh asserted.

Creation of jobs was a priority area of the government while pursuing industrialisation, he said.

"If we remain steadfast in this inclusive growth, we will be able to be make an impact on problems of poverty and unemployment," he said.  During the last three years the economy grew by about 8.3 per cent, the prime minister said.

The problem of poverty could be addressed within the framework of a rapidly expanding economy, he said adding his government was satisfied that it had set in motion various initiatives in this regard in the past three years.

The prime minister said the government would call a meeting of the National Development Council especially to focus on the problem of agriculture and to devise ways to revitalise the rural economy.

Checking price rise

Strategies have been put in place to check inflation, the prime minister said.
The government is determined to curb inflation without affecting the strong growth, he said.

The Reserve Bank has also taken measures to moderate prices. "If inflation becomes a problem and brings agony and hardship to people, it has to be dealt with on priority basis," Singh said, adding "this is precisely" what is being done.

Emphasising the need for growth, he said: "We need to pursue a purposeful strategy so that the growth benefits every one."

On SEZs

On Special Economic Zones, the prime minister said External Affairs Minister Pranab Mukherjee was heading a Group of Ministers to review the approach to SEZs.

"If we have made any mistake. . . we will make necessary corrections," he said.

The prime minister said efforts were on to make India a manufacturing hub. He said making the Indian youth force more skilled was a big challenge while achieving an inclusive growth.

Referring to problems in the field of agriculture, Singh said the pace of progress in this sector was "not adequate" and "falls short of what we need."

The growth of agriculture and productivity needs to be ensured, the prime minister said, adding that expansion of areas under irrigation was essential in this regard. This was being taken care of under the Bharat Nirman programme.

Use of technology to improve productivity of drylands is being undertaken, he said.

Land acquisition

Referring to the issue of land acquisition, Singh said the issue has to be dealt with in a more "humane" manner. There has to be a "more humane rehabilitation and resettlement policy" for those whose land has been taken away, he said.

Apparently referring to the controversy over farmland acquisition in Singur in West Bengal to set up a Tata Motors factory, Singh said the process of industrialisation leading to loss of land had led to certain "undesired consequences".

"Those concerns have to be taken on board," he said.