Identifier
Created
Classification
Origin
09NEWDELHI1285
2009-06-19 13:03:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy New Delhi
Cable title:  

MANMOHAN SINGH: GREAT EXPECTATIONS FOR NEW

Tags:  PGOV PTER PREL PINR KDEM IN 
pdf how-to read a cable
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UNCLAS SECTION 01 OF 02 NEW DELHI 001285 

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV PTER PREL PINR KDEM IN
SUBJECT: MANMOHAN SINGH: GREAT EXPECTATIONS FOR NEW
GOVERNMENT

REF: A. NEW DELHI 1163

B. NEW DELHI 1266

UNCLAS SECTION 01 OF 02 NEW DELHI 001285

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV PTER PREL PINR KDEM IN
SUBJECT: MANMOHAN SINGH: GREAT EXPECTATIONS FOR NEW
GOVERNMENT

REF: A. NEW DELHI 1163

B. NEW DELHI 1266


1. (SBU) Summary: Prime Minister Manmohan Singh addressed
the Lok Sabha (lower house of the Indian Parliament) on June
9, reaffirming the United Progressive Alliance (UPA)
government's agenda and goals as mentioned in President
Prathiba Patil's parliamentary address one week before. PM
Singh emphasized two areas of forward momentum for his
government's second term in office -- improving
India-Pakistan bilateral relations and working constructively
with the main opposition Bharatiya Janata Party (BJP). On
Pakistan, PM Singh asserted India was willing to engage with
Pakistan "more than half way," but must have assurances the
Pakistani government would take strong action to dismantle
the terrorist infrastructure. After months of contentious
election campaigning, the PM pledged a "new beginning" of
Congress Party-BJP ties. He called on the opposition to put
partisan politics aside and to work together in achieving
common goals of tackling terrorism, reviving high economic
growth and expanding social development programs. End
Summary.

Bipartisanship: "The 21st Century is India's"
---


2. (U) Prime Minister Manmohan Singh's remarks on June 9
outlined the achievements of the previous UPA government and
charted a road map for its second term in office. His
address marked the end of the short parliamentary session,
which convened on June 1. President Prathiba Patil addressed
a joint sitting of Parliament one week prior (Ref. A),
followed by a motion of thanks in which members of both
houses debated the priorities and policies laid out in the
President's speech.


3. (U) PM Singh called for the main opposition Bharatiya
Janata Party's (BJP) cooperation in achieving high economic
growth rates, tackling terrorism and expanding UPA flagship
social programs, such as the national rural employment
guarantee (NREGA). He praised all MPs for their bipartisan
support in electing Congress Party veteran Meira Kumar as the
new Lok Sabha Speaker. The PM pledged for a "new beginning"
in Congress-BJP ties, after months of contentious elections
campaigning. He commended opposition leader L.K. Advani's

earlier comments that the "21st Century will be India's" if
the Congress-BJP put partisan politics aside and worked
together. "This is an idea I have been saying, whose time
has come," the PM noted.

Development and Poverty Reduction for Aam Aadmi
---


4. (SBU) The PM's speech was largely in-line with President
Patil's parliamentary address, reinforcing common themes of
reducing poverty, raising the economic growth rate and
expanding the UPA's flagship social development schemes.
Singh reminded Parliament the founding fathers of India had
themselves identified poverty reduction as necessary for true
freedom. Towards that end, the Prime Minister pledged, his
government would further improve the implementation as well
as the funding of the rural employment guarantee program, the
rural infrastructure program called Bharat Nirman, the rural
health mission, primary schools, and the Integrated Child
Development Scheme aimed at eradicating malnutrition.


5. (SBU) Singh also continued to invoke the goal of
"inclusive growth." But, while increasing government
spending on social programs and infrastructure is important,
he asserted, "money does not grow on trees." As such, the PM
underlined, the government needs to ensure high economic
growth in order to generate new jobs and increase government
tax revenues to spend on social programs. Interestingly, the
PM looked to India to regain its high growth path without
waiting for the rest of the global economy to recover. Singh

NEW DELHI 00001285 002 OF 002


also conceded that the government probably would not be able
to reduce the fiscal deficit this year at the cost of social
development spending, but he warned that India could not
spend its way into prosperity and would need a fiscal
strategy for the medium term.

Pakistan: "It takes two hands to clap"
---


6. (SBU) Signaling New Delhi's willingness to engage with
Pakistan, PM Singh said India would be willing to meet with
Pakistani leadership "more than half way" if they took strong
action to crack down on terror groups carrying out
cross-border attacks. In his most conciliatory comments
since the November attacks in Mumbai, the PM said peace with
Pakistan is in India's "vital interest" noting that
instability in the bilateral relationship would have regional
consequences. This has become the standard GOI response to
Pakistan, which the PM reiterated at the June 16 meeting with
President Zardari on the sidelines of the Shanghai
Cooperation Organization (SCO) summit in Yekaterinburg (Ref.
B). "At stake is the future of 1.5 billion people living in
South Asia. It is our vital interest to try again to make
peace with Pakistan. I recognize it takes two hands to
clap," he stated.

Focus on Sri Lanka and China
---


7. (SBU) PM Singh asked the Sri Lankan government to "show
imagination and courage" in meeting the concerns and
aspirations of the Tamil community. He pointed out that
India has already provided more than USD 100 million in
humanitarian aid and is ready to contribute more. The PM
described China as a "strategic partner" and added GOI does
not see relations with China in "agnostic terms." He
underscored their growing economic ties and indicated that
both governments consult regularly on global issues. "There
are of course issues which are complex, such as the boundary
question, but we have agreed upon a mechanism to address this
matter," PM Singh explained.

Comment: No New Promises
---


8. (SBU) Prime Minister Singh did not use the occasion to
lay out any new programs, but rather to reinforce the themes
of the President's speech. Those themes indicate a focus on
the successful delivery of services already promised under
the existing flagship programs and the return of the Indian
economy to a high growth path. Notably, he advocated for a
return to 8-9 percent growth independent of the global
economy. Such a goal is not unfeasible, given India's large
domestic economy, but requires the significant reforms that
have eluded the Prime Minister and his economic team for the
past five years. The Prime Minister's speech suggests he
feels India stands poised at a historical juncture, but it is
far from clear whether its political leaders are ready to
properly steer India into its future. End Comment.
BURLEIGH