Expressing concern over declining growth, President Pranab Mukherjee on Thursday said the government is taking steps to revive investment activity and boost economy.

“Both global and domestic factors have affected our growth. We need to address the impact of both. My government has responded to the situation by taking several measures to revive investment activity and investor sentiment,” Mukherjee said in his address to the joint sitting of Parliament at the beginning of the budget session.

The economic growth during 2012-13 fiscal year is expected to fall to a decade-low level of 5 percent. It was 6.2 per cent in the previous fiscal.
The address marks the commencement of the budget session of Parliament.

DIFFICULT YEAR: “The past year has been a very difficult one for the global economy... It has been a difficult year for India also,” Mukherjee said. “The Indian economy is currently experiencing slower growth. The real GDP grew by 5.4 per cent in the first half of the current fiscal year. This is significantly lower than the average of around 8 per cent in the last decade.”

He said the government is taking steps to deal with factors responsible for the slowdown.

ROADMAP FOR FISCAL CONSOLIDATION: On concerns over fiscal prudence, Mukherjee said the government has announced a roadmap for fiscal consolidation and would contain the fiscal deficit to 5.3 percent of GDP in the current fiscal. On price rise, he said, “Inflation is easing gradually (but) it is still a problem... There has been a moderation in core inflation and recovery in growth is likely.”

The inflation based on wholesale price index (WPI) plummeted to a three-year low of 6.62 percent in January. The retail inflation, however, continued to remain in double digit.

WORKING ON GST: The government, Mukherjee added, is also working with states to reach a consensus on goods and services tax (GST), which will streamline indirect taxation system.

Mukherjee also announced that the government proposes to introduce judicial standards and accountability bill in the budget session as a “significant” measure towards judicial reforms.

PRESENT SCENARIO: Mukherjee devoted a considerable part of the speech to the economic situation and the burden of gathering anxieties about slowdown, job security and employment prospects. “People are concerned about the security of our women and children. They are also anxious about timely delivery of their entitlements and about persisting social and economic inequality,” he said.

GLOBALLY “DIFFICULT”: He said the past year has been “very difficult one” for the global economy. “Europe is in recession. Most emerging markets are growing very slowly. It has been a difficult year for India also. Both global and domestic factors have affected our growth.

“We need to address the impact of both. My government has responded to the situation by taking several measures to revive investment activity and investor sentiment,” he said.

SLOW DOMESTIC GROWTH: Mukherjee, who was finance minister before becoming the President last July, said the Indian economy is currently experiencing slower growth. “Real GDP grew by 5.4 per cent in the first half of the current fiscal year. This is significantly lower than the average of around 8 percent in the last decade. Our slower growth is the consequence of a combination of global and domestic factors,” he said.

Mukherjee assured the nation that the government was taking steps to deal with factors responsible for the slowdown.

CRIME AGAINST WOMEN: In his speech, Mukherjee also referred to the enactment of a “path-breaking” protection of children from sexual offences act, providing for stringent punishment for persons who commit or abet such offences.

The sexual harassment of women at workplace (prevention, prohibition and redressal) bill has already been passed by Lok Sabha for ensuring a safe and secure environment for women in work places.

“My government is also deeply concerned about incidents of sexual offences against women. After considering the recommendations of the Justice JS Verma committee, the government has promulgated an ordinance, amending the criminal law to provide for stringent punishment for heinous sexual offences against women.

“The government has also begun to implement a series of administrative measures to improve the safety and security of women in the country,” Mukherjee said.

ON PAKISTAN FRONT: Days after an Indian soldier was beheaded on the LoC in Jammu and Kashmir, Mukherjee said Pakistan should desist from acts that contribute to "trust deficit". "With Pakistan, we have made progress towards normalisation of relations, strengthening mechanism for bilateral trade and facilitating greater people-to-people contact,” he said.

The President said while India remains committed to taking the process forward, "it is also important that Pakistan abides by its commitments and desists from acts that contribute to a trust deficit".

REGIONAL FRONT: Stressing that India continues to seek peace, stability, cooperation and economic development in the sub-continent, Mukherjee said, "We attach the highest priority to relations with our immediate neighbours." He also made it clear that as Afghanistan prepares for a political and security transition in 2014 and beyond, "we will continue to help Afghanistan evolve peacefully and fight terrorism and extremism".

On China, the President said the government intends to work with the new Chinese leadership to reinforce the positive direction of the bilateral relationship. "My government's foreign policy continues to be driven by the objectives of creating an enabling environment for our national development, ensuring the security of the nation and fulfilling our international responsibilities," he said.

Regarding Sri Lanka, he said, "We are making efforts in our engagement with Sri Lanka, including in our efforts to resettle and rehabilitate the internally displaced persons there and to ensure a life of peace, dignity and equality for the Tamil people."

On Bangladesh, Mukherjee said New Delhi proposes to introduce a constitutional amendment bill in Parliament to give effect to provisions of the land boundary agreement with Dhaka and its 2011 protocol, which will strengthen border management and the country's security.

INDIA’S GLOBAL RELATIONSHIP: Noting that the strategic partnership with the US has deepened with progress across all areas of the relationship, Mukherjee said, "We look forward to intensifying this engagement during the second term of President Obama."

He said India's multi-faceted relationship with Japan, which is also a major partner in the country's infrastructure development efforts, is making good progress. The "privileged and strategic" partnership India has built with Russia received a further boost during the visit of President Vladimir Putin in December last year.

Mukherjee said India's traditionally strong relations with Europe will continue to develop. "The visit of President Francois Hollande to Delhi in Feb 2013, his first Asian destination as President, will further strengthen our friendship and broad-based strategic cooperation with France.”

As a non-permanent member of the UN security council during the last two years, India played an important role in the council's efforts to promote international peace and security.