Modi government makes economic revival 'paramount' goal

NEW DELHI: India´s new government pledged Monday to make the revival of the flagging economy its "paramount" target as it laid out its legislative agenda following Prime Minister Narendra Modi´s landslide election victory.

In an address to the two houses of parliament which was drawn up by Modi´s new cabinet, President Pranab Mukherjee said India´s economy faced "extremely difficult" times and that inflation was "unacceptably" high.

The speech also included a series of ambitious policy goals that had been laid out in the election manifesto of Modi´s Bharatiya Janata Party (BJP), including the creation of 100 new cities and a revamp of the railway network. "The country is passing through an extremely difficult phase on the economic front," said Mukherjee. "Putting the economy back on track is paramount for my government."

"My government will strive to get India on a high growth path, reign in inflation, restart the investment cycle....(and) restore investor confidence," he said.

India´s economy has been growing at below five percent for the past two years, way below the level needed to lift millions of people out of poverty, while inflation is currently running close to nine percent.

Modi´s right-wing BJP, which thrashed the ruling centre-left Congress party in marathon polls in April and May, made reviving the economy the main platform of its campaign as well as promising to clean up government.

In the speech, the president said that "my government ... will be predictable, transparent and fair" and "was committed to providing a clean and efficient administration focused on delivery".

The government would "make every effort" to fulfil its pre-election promise to bring in a new general sales tax and would also "embark on rationalisation and simplification of the tax regime" to make it less "adverserial", Mukherjee said.

Our goal is not to counter China, Obama says

President Barack Obama said a 10-year agreement signed on Monday to give the U.S military greater access to Philippine bases will help promote peace and stability in the region and that he hopes China’s dominant power will allow its neighbours to prosper on their own terms.

The Enhanced Defence Cooperation Agreement will give American forces temporary access to selected military camps and allow them to preposition fighter jets and ships.

“Our goal is not to counter China. Our goal is not to contain China. Our goal is to make sure international rules and norms are respected and that includes in the area of international disputes,” Mr. Obama said at a news conference with Philippine President Benigno Aquino III at the Malacanang Palace.

“We don’t go around sending ships and threatening folks,” Mr. Obama said.

Mr. Aquino said the new agreement “takes our security cooperation to a higher level of engagement, reaffirms our countries’ commitment to mutual defence and security, and promotes regional peace and stability.”

Still, the increased U.S. military role drew consternation from some Filipino activists, who said the agreement reverses democratic gains achieved when huge American military bases were shut down in the early 1990s, ending a nearly century-long military presence in the former U.S. colony.

Some 800 of those activists burned mock U.S. flags and chanted “no-bama, no bases, no war” on the road leading to the gates of the palace where Mr. Obama met with Mr. Aquino.

Our goal is not to counter China, Obama says

President Barack Obama said a 10-year agreement signed on Monday to give the U.S military greater access to Philippine bases will help promote peace and stability in the region and that he hopes China’s dominant power will allow its neighbours to prosper on their own terms.

The Enhanced Defence Cooperation Agreement will give American forces temporary access to selected military camps and allow them to preposition fighter jets and ships.

“Our goal is not to counter China. Our goal is not to contain China. Our goal is to make sure international rules and norms are respected and that includes in the area of international disputes,” Mr. Obama said at a news conference with Philippine President Benigno Aquino III at the Malacanang Palace.

“We don’t go around sending ships and threatening folks,” Mr. Obama said.

Mr. Aquino said the new agreement “takes our security cooperation to a higher level of engagement, reaffirms our countries’ commitment to mutual defence and security, and promotes regional peace and stability.”

Still, the increased U.S. military role drew consternation from some Filipino activists, who said the agreement reverses democratic gains achieved when huge American military bases were shut down in the early 1990s, ending a nearly century-long military presence in the former U.S. colony.

Some 800 of those activists burned mock U.S. flags and chanted “no-bama, no bases, no war” on the road leading to the gates of the palace where Mr. Obama met with Mr. Aquino.