Report to the People

Foreword by the Prime Minister

The presentation of an Annual Report to the People by the Government of the United Progressive Alliance
has set a new standard for accountability and transparency in governance. Over the past four years the UPA Government has offered an annual update on the implementation of the National Common Minimum Programme. These reports, taken together with this year’s, show that the UPA Government has so far been able to implement substantially the commitments made in the NCMP. Building on the initiatives taken during the first three years, especially the launch of our Flagship Programmes, namely, Bharat Nirman, National Rural Employment Guarantee Programme, National Rural Health Mission, Jawaharlal Nehru National Urban Renewal Mission, modified Sarva Shiksha Abhiyan with expanded Mid-
Day Meal Programme, the Government has put in place an “architecture for inclusive growth” during its four years in office. The 11th Five Year Plan, launched during the year, is based on this architecture. The central vision of the 11th Five Year Plan is to trigger a development process that ensures broad-based improvement in the quality of life of our people, especially the poor, the Scheduled Castes, the Scheduled Tribes, Other Backward Classes and Minorities. The Plan also seeks to ensure more regionally balanced development.

In meeting these objectives our Government has given high priority to revitalization of agriculture, the
empowerment of our farmers and the modernization of the rural economy. Several initiatives, listed in this
Report, have been taken to reverse the neglect of agriculture in the period 1996-2004. We have improved
the terms of trade for agriculture, in particular by increasing the minimum support price for foodgrains,
increased investment in irrigation, agricultural research and rural infrastructure and have launched the
Rashtriya Krishi Vikas Yojana, with an allocation of Rs. 25,000 crores for the 11th Five Year Plan. These
initiatives along with the National Food Security Mission and the National Policy for Farmers will facilitate
a turnaround of the agricultural economy. I am confident that this will also enable us to return to a regime
of moderate inflation.

Our Government has made determined efforts to accelerate the pace of development while maintaining reasonable price stability. Control of inflation has been a priority concern. The Government ensured that the rate of inflation was brought down from around 6% in 2003-2004 to a little over 3% in the years 2004-2005 and 2005-2006. An upward pressure on prices since 2007 has been wholly on account of the steep increase in global commodity prices, especially oil prices. The sharp escalation in oil prices and in the price of metals, especially steel, and foodgrains has impacted our domestic economy. The Government has taken several measures to deal with this challenge. Controls have been imposed on commodity exports, tariffs have been reduced to encourage cheaper imports, fiscal and monetary policy initiatives have been taken by the authorities and, wherever needed, administrative measures are being taken to discourage speculation and hoarding. While supply side and demand side measures will have their salutary impact on the price level, a normal monsoon and public recognition of the Government’s determination to reverse the recent spurt in inflation will also help alter the state of expectations. The Indian economy is on a high growth path and I am
confident that we will be able to increase production and satisfy the growing demands of our people and at the same time keep a check on prices.

The focus of the 11th Five Year Plan is education. India is a nation of young people. I sincerely hope the initiatives we have taken in the field of education will unleash the creative potential of all our people. We have increased investment in education with the twin objectives of widening access to education and promoting excellence. Special emphasis is being laid on the empowerment through education of scheduled castes, scheduled tribes, other backward classes and minority communities and women. Our Government has also taken important initiatives in the fields of health care, urban development and the modernization of infrastructure. All these have been stated in detail in this Report. I am also happy to note that during this year we have extended the National Rural Employment Guarantee Programme to all rural districts across the country. This programme will make a major contribution to
softening the harsh edges of extreme poverty in rural India. I urge State Governments to ensure proper and transparent implementation of the NREGA. The UPA Government has worked hard to make our growth process socially inclusive and regionally balanced. The North Eastern region, Jammu & Kashmir and other backward regions have received special attention. At the same time, it has also worked to make the Indian economy more globally competitive. The external profile of our economy has become more robust and has contributed to an improvement in
India’s global standing. It has also enabled us to reach out to our neighbours and increase economic cooperation with the countries of South Asia, South East Asia, Indian Ocean Region and Africa. Our foreign policy has been guided by our desire to create an external environment conducive to peace and stability in our region, ensure India’s accelerated economic development and safeguard our national security and our energy security. We have given the highest priority to strengthening close political, economic,
social and cultural relations with our immediate and extended neighbourhood, all major powers as well as our partners in the developing world and Non-Aligned Movement.

India today enjoys an enhanced profile in the international arena as a model of stable, liberal, plural and
secular democracy and a rapidly growing economy with the ability and capability to play a larger international
role.

I reiterate the commitment of the UPA Government to the principles and the goals of the National Common
Minimum Programme. I sincerely hope this Annual Report to the People will be read by one and all to
appreciate the work being done by our Government.

May 22, 2008
Manmohan Singh