PM’s On Board Media Interaction

Following are the excerpts from Prime Minister’s interaction with media on-board special flight to Kuala Lumpur on December 11, 2005

Q: On ASEAN and Look East policy.

PM- The Lookeast Policy was first elaborated by the Congress Government in 1991. I am happy to note that that initiative has enormously increased our linkages with ASEAN.

Our trade with South Korea, China and with the ASEAN countries is increasing at a handsome rate.

We are also forging new linkages in trade and services and also in years to come, I believe investment flows will also figure very prominently with ASEAN and other countries of East Asia.

Ten years ago, nobody could imagine that South Korea would be such a large investor in India and today that is a reality. There is a new wave in Japan, looking at the possibilities, not only of trade and of investment, and cooperation in many other fields, between India and Japan.

This visit is of great importance for us. It is in a way fulfillment of our commitment to the Look- East Policy, to work closely with the countries of South East Asia and East Asia. Well, in many ways we have a benign relationship with many countries of South East Asia and East Asia, Indonesia is our neighbour, Myanmar is our neighbour, with Malaysia we have strong historic ties, with Thailand we are together forging a new relationship with BIMSTEC. These are all countries with which we have no disputes of any kind. So with this benign background, we can build a healthy, economic relationship covering trade, investment flows and in the years to come, we have to notice that the largest savings surplus of the world is in East Asia and South East Asia.  So, if we are looking for foreign investment, we don’t have to look West.  The surplus resources, surplus savings are in East Asia and South East Asia.  So, in our quest of foreign investment in our country, this is the region of the greatest importance.   My meetings with ASEAN leaders are of great importance to bring about efficient economic community, which will constitute a new magnet and a new pole for growth and stability in the world.

Q: On full time EAM?

PM: That decision will be known when it is taken.

Q:  Relations with China

PM: I think we need a faster growth of our economic exchanges with China.  Our trade is growing at a healthy rate.  I expect that in the years to come, more Indian companies will invest in China.  Several pharmaceutical companies are operating in China.  I welcome Chinese investment in our country.

Q: BCIM proposal – Yunan

PM: We should look at all proposals that establish closer linkages between India and ASEAN and India and South Asia.

Q: Core Committee

PM: I think all these are matters of discussion.  What shape the South East Asia summit will take, what proposals will be made at the summit is a subject matter of discussion.  The very fact that we are invited to take part is a measure of our potential.

Q: Regional blocs

PM:  Let me say that regionalism has come to stay.  There is the Regional Trading Arrangement in Europe, the European arrangement is more than a trading arrangement, it is a community, the American continent is also seeing an upsurge of regionalism.  In this background, I don’t think there is anything wrong in Asian countries coming together to forge growth of the Asian continent. 

Q:  China

PM:  There is a misconception that India and China are in competition.  We are partners.  It is our effort to engage China in greater interaction with India.  Our relations with China are evolving in a healthy direction.  Even on the border issue, we have agreed on the basic principles, that are the guiding principles which should guide the delineation of the border issue. We are hopeful that we can make progress not only in economic relations with China, but also in solving the border issue. 

Q: Separation exercise of nuclear and civilian facilities.

PM: We have two Groups – one on the US side, one on our side.  These are interacting.  As far as the exercise for the separation of nuclear and civilian facilities is concerned, the programme is at a fairly advanced stage.

Q: Terrorism…

PM: Well, terrorism today is a world problem.  International terrorism – we have seen in our neighbourhood – in Indonesia.  For the last several years, we have seen it.  It is now widely recognized that international terrorism constitutes a threat to the civilized world anywhere and everywhere.

Q: ASEAN summit….

PM:  We should look at the outcome.  I find there is great support for India’s engagement, India’s involvement with the South East Asia and South Asian countries recognize that a fast-growing Indian economy with a Gross National Product of 700 billion, growing at a rate of 7 to 8 per cent has a beneficial impact on growth processes on South East Asia as a whole.

Q: EPF rate….

PM:  It’s not a question of me being satisfied or dissastisfied.  It’s a question of what the Employee Provident Fund Organisation can afford.  We need the organization to be strong – financially and make sure that they declare interest rates which they can sustain.  If they can sustain a higher rate, I will be happy.

Q: ASEAN + 3

PM:  Regular summit with ASEAN is now a realized fact.

Q:  No political intervention on EPF rate?

PM:  In EPF, we had said last year also, that there is no scope for budget subsidizing.  Any rate that has to be paid has to come out from the resources of Employee Provident Fund Organisation

Q: East Asia…..

PM:  East Asia ke saath jo hamaari trade hai wah jitni tezi se East Asia ke saath badh rahi hai, utni tezi se aur deshon ke saath nahin badh rahi hai.  Aur jaisa ki aap dekh rahe hain South Korea se jitna investment Bharat mein aa raha hai, to China ho, South Korea, Japan ho, I see enormous scope for expanding trade and involvement flows between our countries.

Q:  Scope of Pathak Committee..

PM:  The scope of the Pathak Committee has been spelt out in the notification.  We have no proposal to tinker with that.

Q:  Economic agenda of the Government…

PM:  The economic agenda of the Government is now well laid out.  We have in the last one-and-a-half-years, taken several initiatives.  There is Employment Guarantee Programme, we have now to see that it is expanded all over the country in the next four years.  We have come out with a Rural Health Mission covering 18 states.  We have to see that the health status of our nation improves substantially.  We have come out with Bharat Nirman – a programme to improve rural infrastructure, power, roads, telecom, and other facilities we have to implement.

            We have only last week launched the Urban Renewal Mission which seeks to improve the quality of living of about 65 more cities in our country.  So, we have got a clearly set agenda, never before in our history has any Government, within one year, come out with so many initiatives.  Our overall thrust is to ensure that our economy grows at the rate of 8-10 per cent so that this growth reaches the poorer sections of our society and our agriculture is given a new forward push, we need a Second Green Revolution in agriculture.

Q: BJP demanded Dayal papers to  be made public

PM: I think they (the papers) are the property of Justice Pathak Inquiry Commission.  Once Justice Pathak Commission of Inquiry will complete its work, this report will be available to the Parliament.  The Action Taken Report will also be available in Parliament.  We are not going to keep anything hidden. 

PM: Be it trade, technology flow, investment in South Asia and East Asia, these are the two regions of greatest importance for the future of global order.

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