THE CONGRESS
PARTY'S PRIORITIES, PLANS AND PROGRAMMES
Change with Continuity
Congress policies have always been anchored in a vision of an economically prosperous, socially
just, politically united and culturally harmonious India. These policies have
never been reduced by rote to a mindless doctrine or empty dogma or simplistic
mantra. The Congress has always created space for change. It has always been
pragmatic. It has always been ready to respond to new challenges. In
consequence, steadfastness to basic principles has never impeded responsiveness
to new requirements.
The 1950s
needed land reforms, community development, the public sector and the building
of agricultural, industrial, irrigation, educational, scientific and other
infrastructure. The Congress ensured that this happened.
The 1960s and 1970s needed a direct attack on poverty, a whole new approach to
agricultural growth and rural employment, the exploration and exploitation of
domestic sources of oil, and the nationalization of banks to meet the
requirements of not just big business houses but also give priority to farmers,
weavers, cottage industries and small industries and traders, as also to
fulfill social needs and aspirations. The Congress ensured that all this
happened.
The 1980s needed renewed emphasis on science and technology to solve the
problems of the people, and the modernization of industry to ready India to
meet the new challenges of the 21st century. It also required India to be
ushered into the electronics, computers and telecommunications age in a
significant way. The Congress ensured that this happened.
The l990s needed bolder economic retorms and liberalization and a much
larger role for the private sector to accelerate growth and promote India’s
integration into a rapidly-changing world economic system. A redefinition of
the role of government in economic development, including
Constitutionally-sanctioned Panchayati Raj Institutions and municipalities to
function as units of local self-government was also needed. The Congress
ensured that this happened.
The Congress makes a solemn commitment to the people of India: to restore peace
among all of its peoples, to strengthen the secular order through emphasis on
social harmony, cultural pluralism and respect for the rule of law, and to
ensure a bright and secure economic future for every family in our country.
THE LAW OF THE LAND WILL BE ENFORCED WITHOUT FEAR OR FAVOUR TO ENSURE THAT
SOCIAL HARMONY AND COHESION IS MAINTAINED THROUGHOUT THE COUNTRY. THERE WILL BE
NO COMPROMISE ON THIS.
Six Basics
The Congress’s six basics for governance:
• Samajik Sadhhavna to ensure social cohesion and harmony by taking the strictest
possible action against those who promote bigotry and hatred;
• Yuva Rozgar to accelerate growth of productive and secure employment
opportunities by around one crore a year so that each family has a viable
livelihood.
• Grameen
Vikas to improve the income and welfare of kisans and khet mazdoors
across the country;
• Arthik
Navotthan to unleash the creative energies of our professionals and
entrepreneurs, the cutting edge of our middle class;
• Mahila
Sashaktikaran to provide for the political empowerment and full
educational, economic and legal equality for women;
• Saman
Avsar to provide for equality of opportunity in every way for dalits,
adivasis, OBCs and religious and linguistic minorities.
These six
priorities constitute the foundation of all policies of the Congress.
The Congress has
consistently maintained that liberalisation and globalisation can be meaningful
only if they are aimed at local-level economic and social transformation that
directly benefits the poor in rural and urban India, bringing prosperity to the
6 lakh-odd villages of India and improving the living conditions of the urban
poor.
The Congress
will broaden and deepen economic reforms. The over-riding Objective will be to attain
and sustain year after year a 8-10% rate of economic growth and to spread this
growth over all sectors, particularly agriculture and industry. An annual
growth rate of less than 4-4.5% in agriculture and 10% in industry is simply
unacceptable.
Rozgar
The priority
requirement for accelerated employment generation is to revive economic growth
and sustain it across the country at between 8-10% per year for well over a
decade. This will be the Congress’s overall objective. Faster and broad-based
economic growth is an essential pre-requisite for accelerating employment
generation. The Congress will also adopt policies to expand employment in the
organized sector, which has fallen precipitously in the last five years. Fiscal
incentives to promote employment-intensive growth will be introduced.
Continued growth
in agriculture will create new employment opportunities. This is particularly
so in the central, eastern and northeastern regions of the country which have
still to realize their full agricultural potential. New jobs will also be
created in other areas of rural development like horticulture, aquaculture,
afforestation, dairying and agro-processing. These need and will be provided
new investment, credit, marketing and technology inputs. A stable long-term
export policy for agricultural products and commodities will be announced.
The Congress will revamp the functioning of the Khadi and Village Industries
Commission (KVIC) so as to make it a modern, research-based, technology-driven,
customer-focused organization. New programmes for the modernization of the coir
industry, handlooms, powerlooms, handicrafts, food processing, sericulture,
wool development, leather, pottery, etc., will be launched.
A national Employment Guarantee Act will be enacted immediately. This will
provide a legal guarantee for at least 100 days of employment on asset-creating
public works programmes every year at minimum wage, for every rural household.
A greater thrust on labour-intensive exports of textiles, handicrafts, gems and
jewelry, leather, software, engineering and consumer goods will also
significantly boost employment. The textile industry will receive special focus
in view of the increased competition in world markets from January 2005 as
mandated by the WTO.
The concerns of small-scale industry like shortage of working capital, lack of
technology and marketing, delayed payments, harassment by inspectors will be
addressed expeditiously. A cluster approach to the development of small-scale
industry will he adopted.
Along with vastly expanded credit facilities for self-employment, the services
industry will be given all support to fulfill its true employment potential.
This includes not just software and IT-enabled services, not just trade,
distribution and transport, not just financial and telecommunications services
but also tourism. Special infrastructural facilities for substantially
expanding international and domestic tourism will be created. Reforms of laws
and regulations that stand in the way of growth of the services industry will
be undertaken.
The Congress will also establish a National Commission to monitor the
functioning of enterprises in the informal sector, the problems they face in
access to technology, credit and markets and recommend corrective measures on
an on-going basis.
To enhance the employability of our youth, systematic efforts will be made to
vocationalise secondary education and to establish at least one industrial
training institute in each development block of the country through creative
public-private partnerships. The employment exchange machinery will be revamped
to provide a closer linkage between demand and supply for labour.
As an indicator of how seriously the Congress takes its commitment to
employment growth, an annual Rozgar Report to the Nation will he prepared and
released on May 1.
Kisans and
Khet Mazdoors
The Congress
will pursue an Agriculture First strategy in resource allocation. Public
investment in agriculture will be stepped up substantially with focus in the
backward and poor regions. This will cover irrigation, electrification,
godowns, marketing, research and extension.
The entire rural
credit system based on cooperatives will be restored to health. The flow of
agricultural credit would be doubled in the next three years and the coverage
of small and marginal farmers by institutional lending will also expand
substantially. Immediate steps will be taken to ease the burden of debt and
high interest rates on farm loans.
A time-bound programme for restoring all public tubewells to good working
condition wherever required will be started. The pace of construction of new
irrigation wells in the poorer districts of the country will be accelerated.
A special technology and extension programme for dryland farming will be
introduced. An intensive agricultural development programme for the 100-odd
districts in the arid and semi-arid regions of the country will he put in
place. Watershed development projects will be promoted on a large-scale and the
wasteland development programme lying dormant these past few years will be
revived.
The agro-processing industry and other agriculture-related activities like
dairying, aquaculture, fisheries, horticulture, sericulture will be encouraged
through fresh investment, technology and marketing resources. A renewed
emphasis will be placed on wasteland development and afforestation.
While the terms of trade will always be maintained in favour of agriculture,
simultaneously steps will be taken to ensure that profitability in agriculture
is also increased.
Farmers all over the country will receive fair and remunerative prices and
government agencies entrusted with the responsibility for procurement and
marketing will pay special attention to farmers in poor and backward states and
districts.
While farm insurance schemes for both crops and cattle will be implemented, the
Congress will also examine the feasibility of an Agricultural Stabilisation
Fund involving a system of direct support or income support to farmers
particularly in the ecologically vulnerable regions of the country.
Controls on the free movement of farm commodities and processing of
agricultural products and regulations that depress the incomes of farmers will
be systematically removed. Farmers will be given greater say in the
organizations that supply inputs to them.
The Congress will ensure the fullest implementation of minimum wage laws for
farm labour. Comprehensive protective legislation will be enacted for all
agricultural workers. It will redouble its efforts to distribute surplus
productive land to the landless. It will also modernize the revenue
administration at the local level and start a major national programme to
record all titles to land and keep them up-to-date.
Like it did for panchayats, the Congress will bring forward a Constitutional
amendment to ensure the democratic, autonomous and professional functioning of
all cooperatives.
Women and
Children
The Congress
pledges to press for the Constitutional Amendment to reserve one-third of seats
in the Lok Sabha and in Vidhan Sabhas for women.
It will launch a
movement for the effective implementation of social legislation such as for
minimum age at marriage, anti-dowry, curbing atrocities on women, anti-sati,
widow welfare, etc. as well as for minimum wages for enhancing women’s welfare.
Stern measures will be taken to ensure the elimination of female foeticide and
infanticide. Marriage registration will be made mandatory.
30% of all funds
flowing into panchayats and nagarpalikas will be earmarked for programmes
relating to the development of women and children and focus on the special
needs of female agricultural labour and women cultivators. Village women and
their associations will be empowered to assume responsibility for all
development schemes relating to drinking water supply, sanitation, primary
education and health, nutrition, biogas, maintenance of water pumps and
borewells and farm forestry.
Complete legal
equality for women in all spheres will be made a practical reality, especially
by removing discriminatory legislation, by giving them equal share in
matrimonial property, by protecting their rights to matrimonial homes and
‘streedhan’, by giving them equal rights of ownership of assets like houses-and
land, etc. All states will be encouraged to set up family courts at the
earliest.
There will be a
major expansion in schemes for micro-finance based on self-help groups,
especially for tribal women, women belonging to scheduled castes, women below
the poverty line, rural women and women in distress, and particularly in the
backward and ecologically sensitive regions and actively encourage the
functioning of producer and marketing cooperatives.
Some states of
India, particularly in the South, have already reached replacement levels of
fertility while other states will do so over this decade. But on present
reckoning, four-five states of India will be unable to reach this crucial
milestone for decades. The Congress will take the lead in replicating the
success of other states in those states where population growth continues
unabated. Population planning is not just a government programme but must
become a movement of civil society as well. A sharply targeted mobilization
effort will be mounted in the 150-odd districts that still have unacceptably
high levels of fertility.
Education and
Health
The Congress
pledges to raise public spending in education to at least 6% of GDP with at
least half of this amount being spent in primary and secondary schools. A cess
will he proposed on all central taxes to finance the commitment to universalize
access to quality basic education. A National Commission on Education will be
set up to allocate resources and monitor programmes for compliance with
national priorities.
The Congress
will ensure that all institutions of higher learning in science, technology,
social sciences and management will retain the sense of autonomy that they have
enjoyed in previous Congress regimes. Academic excellence and professional
competence would be the sole criteria for all appointments to bodies like the
ICHR, ICSSR, UGC, NCERT etc.
The Congress
will ensure that nobody is denied education, including in institutions of
excellence, because he or she is poor. Apart from increasing the supply of loan
scholarships and refinance through banks, it will also establish a Education
Development Finance Company along the lines of HDFC to provide loans at
affordable rates to all those who cannot afford the costs of college and
university education in science, engineering and medicine. Education at all
stages would be free in all respects for boys and girls belonging to dalit and
adivasi communities.
A national
cooked nutritious mid-day meal scheme will be introduced in primary and
secondary schools across the country. The Integrated Child Development Services
(ICDS) will be universalized to provide for a functional anganwadi in every
settlement and full coverage, especially children below age of six.
The Congress
will raise public spending on health to at least 2-3% of GDP, with the focus on
primary health care over the next five years and to around 5% of GDP over the
next decade. The welfare of the Disabled in all respects will receive urgent
attention.
Some state
governments administered by the Congress have introduced innovative health
insurance programmes. A national scheme of health insurance for families living
below the poverty line will be proposed.
The Congress
will introduce a new community anchored health worker scheme and implement it
with the involvement of people’s organizations and panchayati raj institutions.
Minorities
The Congress
believes in affirmative action for all religious and linguistic minorities. The
Congress has provided for reservations for Muslims in Kerala and Karnataka in
government employment and education on the grounds that they are a socially and
educationally backward class. The Congress is committed to adopting this policy
for socially and educationally backward sections among Muslims and other
religious minorities on a national scale. The Congress also pledges to extend
reservations for the economically deprived persons belonging to communities
that are at present not entitled to such reservations.
The Congress
will adopt all possible measures to promote and maintain communal peace and
harmony, especially in sensitive areas. It will enact a comprehensive law on
social violence in all its forms and manifestations, providing for
investigations by a central agency, prosecution by Special Courts and payment
of uniform compensation for loss of life, honour and property.
The Congress
commits itself to amending the Constitution to establish a Commission for
Minority Educational Institutions that will provide direct affiliation for
minority professional institutions to central universities. Special steps will
be taken to spread modern and technical education among women in minority
communities particularly.
New middle-level
technical institutions will be started in places where for example, weavers and
artisans are concentrated. The National Minorities Development Corporation and
State Minorities Development Corporations will be made direct-lending
institutions.
On the Ayodhya
issue, the Congress’s stand has been very clear. All parties must wait for and
abide by the verdict of the courts. If negotiations are to he held, they must
be between the parties to the dispute and must have legal sanction. And the
Places of Worship (Special Provision) Act, 1992 which freezes the status of all
disputed sires other than Ayodhya as of August 15, 1947 must be strictly
enforced.
Dalits and
Adivasis
The Congress
will create a national consensus on the issue of dalits and adivasis getting a
reasonable share of jobs in the private sector. A dialogue with private industry
will be initiated to identify how best Indian industry could fulfill in
tangible measure the aspirations of youth, especially those belonging to the
weaker sections of society.
Determined
efforts will be made to promote a culture of entrepreneurship among the dalits
and adivasis by providing businesses run by them with preferential treatment in
government procurement and by extending bank credit at affordable terms.
State
governments will be urged to make legislation for conferring ownership rights
in respect of minor forest produce on adivasis particularly who work in
forests.
All reservation
quotas, including those relating to promotions will be fulfilled in a
time-bound manner. Special recruitment drives particularly for Class land II
vacancies will be launched.
A comprehensive
national programme for minor irrigation of all lands owned by dalits and
adivasis will be introduced. Landless families will be endowed with some land
through the proper implementation of land ceiling and land redistribution
legislation.
There is need to
reconcile the objectives of faster economic growth and environmental
conservation as far as tribal communities dependent on forests are concerned.
The Forest Conservation Act, 1980 has prevented a wholesale loss of forests. At
the same time, concerns have been raised that in its implementation rigidities
have developed depriving tribal communities the benefits of economic growth.
These concerns have to be recognized and addressed in an ecologically
sustainable manner. In addition, there is need to put in place more effective
systems of relief and rehabilitation for tribal communities displaced by
development projects.
Taking note of
the growing unrest in tribal areas in various states, the Congress will have a
fresh look at development strategies for tribal areas and work out new designs
of sustainable livelihoods. Income accruing to the government from forest will
be earmarked as additional assistance for programmes of tribal development.
Food and
Nutrition Security
Over the past
few years, there has been far too much tampering with the public distribution
system (PDS) that provides the basis for extending food security to crores of
Indians. Because people are buying less foodgrain from ration shops, huge
foodgrain stocks have been built up. The Congress will strengthen the PDS
particularly in the poorest and backward blocks of the country and also involve
women’s and ex-servicemen’s cooperatives in its management at the local level.
While the focus of the PDS will be on below-the poverty line (BPL) families,
surveys to identify such families will be conducted every two years by
panchayats based on transparent and verifiable criteria such as land ownership,
occupation, family status, etc.
About 6-8% of
our population comprising the most destitute and infirm do not have access to
the PDS even where the PDS works well. Special schemes to reach foodgrains to
this section through panchayats will he launched. Antyodaya cards for all
households at risk of hunger will be introduced. Grain banks in chronically
food- scarce areas will he established.
It is a matter
of great shame that even today over a third of babies born in India are
under-weight reflecting acute malnourishment of the girl child who later
becomes a mother. Nutrition programmes for the girl child particularly will be
expanded on a significant scale.
Panchayati
Raj
Panchayat bodies
that got Constitutional sanction a decade ago because of the vision and
relentless zeal of Rajiv Gandhi, now need full devolution of funds, functions
and functionaries. Globalisation and economic reforms must be based on strong,
effective and empowered institutions of local self-government.
The Congress
will ensure that all funds for poverty alleviation and rural development
programmes will be credited directly to panchayat bodies. The Gram Sabha will
be empowered to emerge as the foundation of the panchayati raj system.
Appropriate audit systems would be established to ensure sound financial
administration at the local level.
Informal and
Unorganised Sector
Almost 93% of
the workforce in our country is in the unorganized sector. While every
initiative must and will be taken to expand the proportion of employment in the
organized sector, the Congress will ensure the well-being and welfare of all
workers in the unorganized sector. Some Congress state governments have already
taken significant steps in this area but a renewed national effort is now
needed with focus on social insurance and health support. Special social security
schemes started by earlier Congress governments for workers in the unorganized
sector like weavers, handloom workers, fishermen and fisherwomen, toddy
tappers, leather workers, plantation labour, beedi workers, etc., will be
expanded.
The Congress
will establish a National Commission to examine problems facing enterprises
operating in the unorganized sector. The Commission will be asked to make
appropriate recommendations to provide technical, marketing and credit support
to these enterprises. A National Fund will be created for this purpose. A
single, simplified law will be enacted to set out the obligations of these
enterprises to labour and for safety. Appropriate social security measures will
he devised to protect the workers in the unorganized sector against the risks
of ill-health, unemployment and old age.
The Congress
will create legal space in the cities and towns for hawkers, vendors,
food-sellers and all such informal sector service activities that enrich urban
life, so that they are spared the risk of extortion, eviction, confiscation and
harassment.
Social and
Physical Infrastructure
Public-private
partnerships will form the basis of infrastructure expansion. Among other
things, this could take the form of public expenditure and private management.
Subsidies in the provision of infrastructure will be made explicit and provided
through the budget of the central and state governments.
The railways
have suffered immensely over the past few years with rail safety being a prime casualty.
The Congress will move purposefully to modernize the vast railway network,
keeping both the economic and social dimensions of the railways in mind.
The Congress
will vastly accelerate the development and use of the country’s irrigation
potential. By 2020, the presently known irrigation potential must be harnessed,
for which long-term commitments of funds will be made. But even after this,
two-fifths of cultivated area will still be rain-fed, particularly in central
India with the bulk of India’s tribal population. The Congress and its partners
will prepare and implement, on a much larger scale, plans for these regions.
The Congress
will launch a special programme so as to ensure each household will have full
access to reliable power in the next three to five years. The Congress will use
India’s foreign exchange reserves creatively to significantly expand the
existing public investment programme in power generation so as to add at least
6000-8000 MW of generating capacity every year. The public sector has a crucial
role to play in power generation even as the private sector takes on an
increased role in power distribution.
In order to
supplement water availability and recharge the country’s groundwater resources,
a local community-based National Rainwater Harvesting Programme will be
launched to capture at least an additional 1% of India’s rain resources every
year.
The Congress
commits itself to work out a comprehensive programme of urban renewal based on
public-private partnerships. This will lay particular emphasis on the
modernization of urban transport, water supply and sanitation and control of
pollution. Municipal administration will be revived and made financially
self-sustaining.
Social housing
schemes will be launched to meet the needs of the urban poor and to deal with
the proliferation of slums. Technologies to promote low-cost housing will he
deployed on a large scale.
Defence,
National Security and Foreign Policy
The Congress
will ensure that all delays in the modernization of our armed forces are
eliminated and that funds budgeted for modernization are, in fact, spent to the
fullest. The Congress is committed to maintaining a credible nuclear weapons
programme while at the same time it will evolve demonstrable and verifiable confidence-building
measures with its nuclear neighbours. The welfare of ex-servicemen will occupy
urgent attention and plans will he expeditiously prepared for involving them in
crucial nation-building tasks. A new Department of Ex-Servicemen's Welfare will
be set up in the Ministry of Defence. The long-pending issue of one-rank,
one-pension will once again be re examined and the satisfactory solution
arrived at expeditiously.
The Congress
will make the National Security Council a professional and effective
institution. It will immediately have a discussion in Parliament on the
Subrahmanyam Committee report on Kargil and move resolutely to implement its
recommendations to strengthen our intelligence networks.
The Congress has
been consistent, unlike the BJP, on the issue of dialogue with Pakistan on all
issues including Jammu and Kashmir. It has always advocated formal and informal
talks on the basis of the historic Shimla Agreement of 1972. At the same time,
the Congress is firm in its view that Pakistan’s sponsorship of cross-border
terrorism must end completely once and for all. If it continues, then the
Indian state has the responsibility to protect its citizens.
The Congress
will expand trade and investment relations with China and with countries of
East Asia. It will revive the country’s close ties with West Asia and other
non-aligned countries. It will reaffirm our traditional bonds with countries
like Russia, Japan and the European Union. It will engage the United States in
scientific, technological, strategic and commercial cooperation. It will take
the leadership to strengthen SAARC and launch major regional projects in areas
like energy and water that will bring benefits to all countries of our region.
Regional
Development
As always, the Congress
will work for balanced regional development. India’s northeast demands and will
receive special treatment with particular emphasis on roads, power, tourism,
communication and handicrafts. Without the restoration of law and order and a
firm approach to combating militancy, no development can be sustained in the
northeast. The northeast will emerge as a gateway to East Asia with which India
is building new economic relationships. The Congress also takes note of growing
inter-state disparities that have led to some important states like UP and
Bihar to fall behind in social development and economic growth. While state
governments have the final responsibility for governance, the central
government has still an important role in ensuring that the lagging states
improve their performance through fiscal and other policies.
In view of the
importance of state-level reforms, the Congress will set up a Systems Reforms
Commission to work out, in cooperation with state governments, the details of
state-level reforms that are needed to accelerate growth and improve the
quality of basic social services. A structured and transparent approach to
alleviate the burden of debt on states so as to enable them to increase social
sector investments will be adopted.
Administrative,
Police, Judicial and Electoral Reforms
An
Administrative Reforms Commission will be established to prepare a detailed
blueprint for revamping the public administration system completely so as to
make it more performance-oriented and accountable. While basic governance is
the priority, e-governance will be promoted on a massive scale in areas of
concern to the common man particularly, like land records, tax administration,
etc.
All government
agencies but particularly those that deal with citizens on a day-to-day basis
must operate in a responsive and accountable manner. The Right to Information
Act at the centre will he made more progressive, meaningful and useful to the
public. The monitoring and implementation of the Act will he made more participatory
and the penalty clauses regarding delays, illegal denials and other
inadequacies relating to the supply of information to the public will be
operationalised soon. Protection will be extended to all “whistleblowers”
through statutory means, if necessary.
The police force
will function in an impartial, professional, effective and humane manner. The
special needs of police families, especially in education and housing, will be
taken care of in adequate measure. More women will encourage to join the police
force.
Immediate
measures will be taken to drastically cut delays in courts, particularly in the
High Courts and in lower levels of the judiciary. Legal aid services will be
aided. Alternative dispute settlement mechanisms will be strengthened. A new
system of nyaya panchavats will be instituted.
The Congress is
deeply committed to electoral reforms. It was the first party to set up a
committee to review its system of financing to ensure maximum transparency. The
report of that committee is in the public domain and the Congress is on the
path of its implementation. It was the only party to welcome last years Supreme
Court order on disclosure by candidates that was opposed by the BJP and it
allies.
The Congress
will tackle the root causes of corruption and the generation of black money. To
a large extent, deregulation, removal of laws that have outlived their utility
or have not fulfilled their social purpose, transparency in party financing and
state funding of elections will help. Even so, the Congress is conscious of the
havoc that corruption at all levels adds to the harassment of the common man
and is determined to rid the country of this scourge.
Industry
Revival of industrial
growth is of paramount importance. Incentives for boosting private investment
will be introduced. The system of approvals of foreign direct investment will
be made more transparent. Indian industry will be encouraged in every manner to
enhance its global presence. Competition, both domestic and external, will be
deepened across industry with professionally-run regulatory institutions in
place to ensure that the competition is free and fair. These regulatory
institutions will protect the interests of consumers.
The Congress
will strengthen the public sector in key, strategic areas, including
infrastructure. It will help public sector companies in these areas to emerge
as global companies. There is still an important role for the public sector as a
venture capitalist in new and emerging areas. Public sector companies that can
he revived through new management will be identified. The great advantage of
the public sector still lies in starting new projects, while the great
advantage of the private sector lies in running them commercially.
Public-private synergies will be fostered.
The Congress
will approach privatization selectively. Disinvestment will not be resorted to
merely to raise revenue to meet short-term targets, as the NDA has been doing. Disinvestment
revenues will be used for designated social development programmes. The
Congress will ensure that disinvestment increases competition and consumer
welfare.
The Congress
will establish a National Manufacturing Competitiveness Council to provide a
continuing forum for policy interactions to energise and sustain the growth of
the manufacturing industry like food processing, textiles, engineering,
consumer goods, pharmaceuticals, leather, capital goods, industrial machinery
and IT hardware. A massive push will be given to the applications of IT
particularly. Household and artisanal manufacturing industry that is the
lifeline of many towns and cities across the country will be modernized and
given greater technological, investment and marketing support.
The Congress is
committed to a modern, world-class financial sector that also fulfills
social objectives. Competition in the financial sector will be expanded.
Public sector banks will be given full managerial autonomy. Banks will be
encouraged in every way to expand lending, particularly to agriculture,
agro-industry, value-added agriculture, small-scale industry and
infrastructure. Interest rates must be such so as to stimulate not just
investments but is also provide adequate returns to savers.
Fiscal Policy
The Congress
reiterates its firm commitment to eliminating the revenue deficit of the
central government in five years time so as to release more resources for
investments in social and physical infrastructure. A detailed roadmap for accomplishing
this will he unveiled within 30 days of coming to power so that a national
consensus is also created.
The Congress
will undertake major tax reforms to significantly expand the base of taxpayers,
to substantially increase tax compliance and to make the tax administration
more citizen-friendly. Without increasing tax rates, the Congress believes that
the present Tax:GDP ratio of 14-15% must he raised to at least 18% by the end
of the decade. VAT will be introduced in close cooperation and consultation
with trade and industry. This will enhance the competitiveness of Indian
industry and also check tax evasion.