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O 191303Z JUN 09
FM AMEMBASSY NEW DELHI
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RUEIDN/DNI WASHINGTON DC
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RUCNDT/USMISSION USUN NEW YORK 8220
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RUEKJCS/JOINT STAFF WASHDC
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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 
 
¶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