New Delhi: In an attempt to explain the recent steps taken by the government to the people of the country, Prime Minister Manmohan Singh on Friday evening addressed the nation saying the reform measures taken by the UPA were essential for the economy and assured that they would not harm the citizens in any way.
Explaining that "no government wants to burden the common man", the Prime Minister even asserted that it was necessary to "regain the confidence of the investors".
While the speech by the Prime Minister was welcomed by India Inc, the Opposition accused him of misleading the country on foreign direct investment (FDI) reforms.
Singh, in his speech, had defended the FDI in retail saying it would benefit the farmers and create employment opportunities for the youth of the country.
"FDI in retail will benefit the farmers, investment by retails firms will reduce supply line shortages…farmers will get better bulk prices," said the Prime Minister, asking the people to not believe those who were spreading false information regarding the FDI reforms.
However, the Opposition said that the Prime Minister was trying to spread confusion across the country on the issue of economic reforms.
"To say that their arrival will improve the condition of farmers is absurd. This policy will create new set of middlemen," said JD(U) spokesperson Shivanand Tiwari.
Trinamool Congress chief Mamata Banerjee, whose ministers in the Centre submitted their resignations to the Prime Minister earlier on Friday, termed the move as misuse of "Aam Aadmi" and "power of chair".
In a statement, the West Bengal Chief Minister said, "I want to ask, what is the definition of Aam Aadmi? What is the definition of democracy? Is it not becoming clear that use of the name of Aam Aadmi, and misuse of power of chair, is to finish Aam Aadmi? Is it the game plan?"
The Samajwadi Party also said that there was not "much substance" in the speech of Singh.
Earlier in his speech, referring to the fuel price hike, the Prime Minister pointed that while the subsidy on diesel was Rs 17 per litre, there was a hike of just Rs 5 per litre.
"To remove total subsidy on diesel, we needed to raise price by Rs 17 per litre, we raised only by Rs 5. Diesel is now widely used including by SUVs, won’t be fair to subsidise it," said the Prime Minister.
The Prime Minister defended the decision to put a cap on the subsidised LPG cylinders, claiming that most of the households in the country used just six cylinders in a year.
Singh also said that the government had not touched the price of kerosene as it is used by the poor.
Defending the reform measures by his government, the Prime Minister said, "We have insulated you from global petroleum prices for long; our subsidy bill would have bloomed."
The Prime Minister said "money does not grow on trees and we need to contain out subsidy bill".
"It is the government's responsibility to work for national interest. We wanted to take action before people lose faith in the Indian economic story," he said.
The Prime Minister also invoked the 1991 crisis, saying the country must not forget it.
Reacting to the speech of the Prime Minister, the Left said that it was an attempt to "defend the indefensible".
"The Prime Minister has sought to defend the indefensible steps taken by the government. The Prime Minister has not answered how he could proceed with these measures when it does not have the support of the overwhelming majority in Parliament," CPM general secretary Prakash Karat.
On FDI in retail issue, Karat contended that it was well known that the entry of Walmart and other MNC chains will displace small shopkeepers and traders.
"Instead of regulating the existing organised retail trade, government wants to set up monopoly chains controlled by foreign companies," he said.
"Contrary to what he (PM) has said, the bulk of diesel is used by farmers irrigating their land and by trucks for transporting goods. This price increase will harm farmers and stoke inflation and high prices," Karat said.
CPI National Secretary D Raja described the address as a "very very desperate" bid by the Prime Minister to reach out to people.
He claimed Singh "miserably failed" to answer any questions raised by common man and parties.
However, the India Inc and the Congress party hailed the Prime Minister on his speech calling it a "balanced" one.
Noted industrialist Adi Godrej said, "The speech by the Prime Minister was a very balanced speech."
Meanwhile, vice chairman and managing director of Bharti Enterprises Rajan Bharti Mittal called it a signal of the reforms to come.
"This is a signal of the reforms to come. We should welcome the decision taken by the government," said Mittal.
The Congress party also rallied behind the Prime Minister saying he needs to put the economy back on track, and had explained why the tough steps taken by the government were necessary.
Minister of State (PMO) V Narayansamy hit out at the Opposition for saying that the Prime Minister sounded like a CEO in his speech. He said, "Well the PM has to behave in a business like manner. He needs to put the economy back on track with solid professional decisions."
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