In a back-to-basics manifesto, the Congress pledged to return to its constituency of the weak and the underprivileged with special emphasis on agriculture and unemployment. The party proposes to create a national consensus on Dalits and Adivasis getting a reasonable share of jobs in the private sector.
While the manifesto, released by Congress President Sonia Gandhi, makes no mention of support to labour reforms, it offers an Agriculture First strategy: a bouquet of populist measures like doubling farm credit over the next three years, lowering interest rates on farm loans, and some basic fine-tuning like increasing public investment in agriculture.
On employment, the party promised a National Employment Guarantee Act that would be promulgated as soon as it came to power. This is seen as providing legal guarantee for at least 100 days of work in public works programmes at minimum wage for every rural household.
In the question and answer session that followed the release of the manifesto, former Finance Minister Pranab Mukherjee said while the party would not necessarily roll back the economic policies of the ruling National Democratic Alliance, it would review those it did not agree with, divestment for bridging the fiscal deficit being one.
"The Congress will ensure that divestment increases competition and consumer welfare," Mukherjee said, adding that it would not be resorted to "merely to raise revenue to meet short-term targets, as the NDA has been doing".
The party stressed a global role for the public sector, including that of a venture capitalist, and said it would strengthen public sector undertakings in strategic areas like infrastructure.
The manifesto said annual growth of less than 4-4.5 per cent for agriculture and 10 per cent for industry was "simply unacceptable". If voted to power, it will set out a road map within 30 days to eliminate the revenue deficit within five years.
The tax-GDP ratio can be raised to 18 per cent from 14-15 per cent now without increasing the rates, it said. The value-added tax regime will be introduced in close co-operation and consultation with trade and industry, it added.
Surplus resources, after eliminating the revenue deficit, will be invested in social and physical infrastructure. Major reforms will be undertaken to expand the tax base, enhance compliance and to make the tax administration simple.
Power reforms, too, would be in focus, the party said, and promised to use the foreign exchange reserves creatively to expand public investment in power generation so as to add at least 6,000-8,000 Mw of generating capacity every year.
At a time when interest rates are at a historic low, the manifesto says rates must stimulate investment while providing adequate returns to savers.
The 32-page manifesto also promises incentives to boost private investment and says the system for approving foreign direct investment will be made more transparent.
The party promised to study the feasibility of setting up an Agricultural Stabilisation Fund to provide direct income support to farmers, especially in ecologically vulnerable areas. It committed itself to always maintaining the terms of trade in favour of agriculture and removing curbs on the free movement of farm goods.
The party's emphasis in the manifesto was on rural employment, including a long-term policy exclusively for the export of agricultural products. It promised a thrust to labour-intensive exports like textiles, handicraft, and gems and jewellery.
The services industry, the party said, would also be given support to fulfill its employment potential. "Reforms of laws and regulations that stand in the way of growth of the services industry will be undertaken," the manifesto says.
An annual Rozgar Report will be presented to the nation every year on May 1, to demonstrate how seriously the party takes employment.
In the social sector, the party promised to raise public spending on education to at least 6 per cent of GDP with an emphasis on primary and secondary education.
A cess on all central taxes to finance universal education has also been proposed. It has proposed the formation of an education development finance company along the lines of HDFC to provide student loans at affordable rates of interest.
Public spending on health to the tune of 2-3 per cent of the GDP has been proposed.
On Centre-state financial relations, the manifesto supported the introduction of a value-added tax to enhance the competitiveness of Indian industry and also check evasion. However, VAT will be introduced in close cooperation and consultation with trade and industry.
