Press Conference

INFLATION WILL BE TAMED

NEW DELHI: A confident looking Prime Minister Dr. Manmohan Singh has promised "to carry forward" the dialogue process with Pakistan with a sense of "realism", continue economic reforms with requisite "course correction", and urged the Opposition to behave responsibly. He termed as misconception that he could be pressurized and asserted that the UPA government would last the full five-year term. Let there be no doubt or ambiguity" about it. He was confident that inflation would be controlled.

In his first formal interaction with the media here on 4th September, Dr. Manmohan Singh fielded all questions covering the entire gamut of government policy with equanimity and with a touch of humour. Asked if there were two centers of power, he said "Smt. Gandhi has every right to know on what goes on in the government as chairperson of UPA and as the Congress President, but there is no foundation to say there are two separate centers of power."

On inflation, Dr. Manmohan Singh said the government will take firm measures to check inflation without hurting the growth process." He said there would be no ideological aversion to disinvestment. Expressing optimism about his forthcoming meeting with Pakistan President Gen. Musharraf in New York later this month and on the ongoing foreign minister level talks, Dr. Manmohan Singh made it clear that Pakistan must end cross-border terrorism and check infiltration as promised in January 2004. Dialogue can move forward only if terrorism is controlled," he told a questioner and added: "We are not afraid of discussing Jammu and Kashmir but we do not buy the argument that it is the only issue affecting our relations."

Saying that the New Delhi will "not compromise with militancy and violence," the Prime Minister reiterated that his government is "ready to talk to any and all disaffected groups in J&K, northeast or elsewhere. We are not laying down any pre-conditions but expect that those who resort to militancy should eschew the path of violence and stop the killing of innocent citizens."

Dr. Manmohan Singh stated that he would be visiting Jammu and Kashmir shortly. On his vision for South Asia, he said, time has come when we can take "measured steps" to strengthen our relations and go forward since "all the countries of south Asia share common destiny." Turning to the domestic scene the Prime Minister said education must contribute to excellence without being a "hostage to fundamentalism of the Left or the Right." The Centre, he said, is alive to inter-state water disputes, which, he said, need to be addressed by being "mindful of sensitivities" of the issue.

How do you rate your Government’s first 100-days, Prime Minister was asked and he replied: "There were constraints. But I think we have done reasonably well. We will soon be able to gain mastery over the inflationary pressures."

He expressed the view that the Reserve Bank and the Finance Ministry should address the question of liquidity over hang in the economy. Answering a question, the Prime Minister justified the proposal for reservations in the private sector. He was optimistic that the private sector would show, sensitivity to the employment needs of marginalized groups without any need for a legislation.