PM explains FDI in retail, other economic reforms: Highlights

New Delhi: Prime Minister Manmohan Singh addressed the nation this evening to explain the economic measures for which he has staked his government, which is now in a minority.

Here are the highlights of his address:

• You have the right to know why we took these decisions
• No government wants to put pressure on the common man
• Government has to work in national interests
• Creating employment is important, especially in rural areas
• The challenge is to implement this during  world recession
  
• I believe that we have been able to contain the effects of a global economic slowdown
• We have to get investor confidence back in the Indian economy
• Diesel prices and cap on subsidized LPG cylinders:  world prices are going up, we have tried to insulate you
• Subsidies on fuel are very large, though, and it would have shot up to more than 2 lakh crores
• Where will we find the money for this? Money doesn't grow on trees
• If fuel prices were not increased, fiscal deficit would have been out of control
• To get it in line with international prices, diesel prices should have been hiked by Rs 17. We have hiked it by only Rs 5.
• Much of diesel is used by big cars and SUVs. Should the Government subsidize this?
  
• Almost half our people use 6 cylinders a year. The LPG cap will not affect them.
• Even after the increase, the prices are lower than Nepal, Bangladesh, Pakistan and Sri Lanka.
  
• I know what happened in 1991 and I would be failing in my duty as PM of this great country if I did not take strong preventive action.
• We are not in that situation today, but we must act before people lose confidence in our economy.
  
• The world is not kind to those who do not tackle their own problems. Many European countries are in difficult position today. 
• The total subsidy on petroleum products will still be Rs. 160000 crores ...more than what we spend on Health and Education together.
  
• Lets see the decision to allow foreign investment in retail trade. Some think it will hurt small traders. This is not true.
• In a growing economy, there is space for big and small to grow. The fear that small retailers will be wiped out is completely baseless.
  
• Those who bring FDI have to  invest in transport, warehouses, infrastructure.
  
• Prices paid to farmers will go up and prices paid by farmers  will come down.
  
• The growth of organised retail will also create millions of good quality new jobs.
  
• We realise that some state governments may have objections. Thay is why they have the right to decide whether they will implement it in their state.
• But no state has the right to prevent others from introducing retails in reform to help its farmers and shopkeepers.
• In 1991, when we opened India to foreign investment in manufacturing, many were worried.
• Today, Indian companies are competing effectively both at home and abroad, and they are investing around the world.
  
• We have been able to achieve 8.2% growth.We need to do more, and we will do more. But to achieve inclusiveness we need more growth. 
• Please do not be misled by those who want to confuse you by spreading fear and false information.
  
• The same tactics were adopted in 1991. They did not succeed then. They will not succeed now. I have full faith in your wisdom.
  
• I promise you that I will do everything necessary to put our country back on the path of high and inclusive growth. I need your support.
• The time has come for hard decisions. I urge you to help strengthen our efforts.