Sir, a number of important developments have taken place after the close of the Budget session of this Parliament. Seven weeks have passed since the Government took the difficult, and even painful, decision to devalue the rupee. I am keenly aware that there are some misgivings in the minds of some honourable members about this decision and about the economic policies of the Government in general. That is why, I am now taking this opportunity to share my thoughts with you, Sir, and to benefit by the counsel and criticism of hon'ble Members on both sides of the House. I shall listen carefully to what honourable members have to say and I hope, I shall have an opportunity towards the end of the discussion to respond to the suggestions made and sentiments expressed in this August House. A supplement to the Economic Survey has been prepared and is being circulated to honourable members. Recent trends in the economy have been outlined in the supplement, and I do not intend to take much time of the House in going over the same ground. But I would like to recapitulate, at the outset, some of the salient developments in the Indian economy in recent years. Sir, when I presented the Budget early this year, I had occasion to say that, in many ways, the year that was then drawing to a close had been a very difficult one. On the latest reckoning, agricultural production declined by nearly 15 percent in 2005-06 industrial production increased by only 3 percent and total national income in real terms declined by about 4 percent. It is not surprising that in the face of such a sharp reduction in real resources, prices increased by as much 15 percent in one year and exports declined marginally in spite of growing assistance to them. We had to tighten import restrictions further even in respect of essential raw materials and components. In the meanwhile, our repayment obligations were rising stadily so that we had to borrow million from the International Monetary Fund last April. In a sense the difficultires that we have been experiencing of late began to gather momentum towards the middle of the Tenth plan period.
