Some People Want China, And Not India, 
                 To Become Economic Super Power
                 P. Chidambaram
                 (While                  participating in the debate on the motion of confidence in                  Loksabha on July 22, 2008)
                                   
Mr. Speaker Sir, 42 months                  after this Government came into office, we have this Motion of                  Confidence moved by the hon. Prime Minister.  
                                  I have listened very carefully the whole of                  yesterday to the speeches led by the speech of the Leader of the                  Opposition and many other hon. Members.
                                  Sir, this Government did not move a Motion of                  Confidence when it was first sworn in office.  It is widely                  accepted that this Government enjoyed a clear majority.  The                  withdrawal of support by the Left Parties created a situation                  where despite the numbers, the numbers were easily demonstrated                  by simple arithmetic by the hon. External Affairs Minister                  yesterday, a question arose whether this Government enjoyed the                  confidence of this House or not.
                                  Sir, the Prime Minister offered to move the                  motion and he has moved the motion with a brief but eloquent                  speech.  
                                  My good friend, Mr. Salim said that we have moved                  away from six basic principles of the Common Minimum Programme.                   If I have the time, I would deal with each one of the six, but                  since I have limited time today, there are many other hon.                  Members, like Mr. Malhotra, who will be speaking, let me deal                  with two of the more important of the six principles.
                                  The first is that this Government will ensure                  that the economy grows at least seven to eight per cent per year                  in a sustained manner.  After 42 months what is the position?                   The economy has grown at an average of 8.9 per cent in the first                  four years.  Compare this with the average of 5.8 per cent                  during the six years of NDA Government.  We came into office                  towards the end of the Tenth Plan. The target for the Tenth Plan                  was eight per cent.  It is because the economy grew at 9.4 per                  cent in 2005-06 and 9.6 per cent in 2006-07 that we were able to                  achieve an average growth rate for the Tenth Plan of 7.8 per                  cent, which was nearly close to the target of eight per cent.                   The Eleventh Plan began in 2007-08.  There were prophets of                  gloom and doom.  I had always maintained that in 2007-08 we will                  grow close to nine per cent.
                                  Actually, when the revised agricultural estimates                  have come in, the growth in 2007-08 is close to 9.1 per cent.                   We have made a resounding start of the Eleventh Plan and I am                  confident that we can redeem our promise to grow at over seven                  to eight per cent.  
                                  Sir, I wish to make a special mention of                  agriculture.  The year 2007-08 is a watershed year in India’s                  agricultural history.  Food grains production has registered an                  all time record of 230.7 million tonnes.  Of this, rice                  production was 96.43 million tonnes, which is a record; wheat                  production is 78.4 million tonnes, which is a record; coarse                  cereals was 40.7 million tonnes, which is a record; pulses was                  15.1 million tonnes, which is a record; oil seeds was 28.87                  million tonnes, which is a record.
                                  Cotton was 25.81 million bales, which is a                  record.  How did this come about?  This came about through                  farsighted plans, missionary approach and attention to details.                   This Government launched the National Horticulture Mission.                   This Government undertook renovation, repair and restoration of                  water bodies.  This Government appointed the Vaidyanathan                  Committee for reviving cooperative credit institutions.  This                  Government launched a mission for pulses.  This Government set                  up the Rainfed Area Development Authority.  This Government                  launched the Rashtriya Krishi Vikas Yojana for Rs. 25,000 crore                  and the National Food Security Mission for Rs. 4,882 crore.                   Under this Government’s charge, capital formation in agriculture                  has increased from 10.2 per cent in 2003-04 to 12.5 per cent in                  2006-07.  
                                  In the first four years, we have sanctioned                  proposals for Rs. 50,000 crore under RIDF and the corpus for the                  current year is Rs. 18,000 crore.  So, I ask, Sir, respectfully,                  show me any other four year period in the history of independent                  India where so much has been done for agriculture.  This is a                  difficult year.  I promise you, even in this difficult year, we                  will achieve a growth rate which is better than what was                  promised in the CMP.  That will be a growth rate far better than                  what is achieved in the six years of the NDA Government.                   
                                  Another of the six principles was to enhance the                  welfare and well-being of farmers, farm labour and workers,                  particularly those in the unorganized sector.  No Government has                  done more for farmers than this Government.  I recognize that                  some farmers take extreme step of committing suicide.  It was so                  ten years ago; it was so four years ago.  Every suicide is a                  blot.  Whenever there is a suicide, we have to hang our heads in                  shame.  We have, therefore, addressed the needs of farmers in a                  systematic way.  We are confident on that.  While some results                  are visible, more results will be visible.  
                                  Sir, farm credit has increased from Rs. 86,000                  crore in 2003-04 to Rs. 2,50,000 crore in 2007-08.  This year,                  the target is Rs. 2,80,000 crore; but we will exceed the                  target.  In order to take care of farm labour, who do not get                  work throughout the year, we introduced the NREG Scheme.  In                  less than 15 months, the Scheme has been rolled out to all the                  597 rural districts of India.  Why did the NDA not introduce the                  NREG Scheme?  A paltry amount of Rs. 75 was given as old-age                  pension.  We raised it to Rs. 200 a month.  We have removed the                  condition that they must be a destitute.  We persuaded the State                  Governments to match it by another Rs. 200.  Why did the NDA                  turn a blind eye to the suffering of old people?
                                  For unorganized workers, there is a path-breaking                  Bill before Parliament.  We are debating the Bill.  We have not                  yet resolved the differences of the Bill.  Yet, even before the                  Bill was passed, we introduced Aam Aadmi Bima Yojana                  which would provide death and disability insurance to the poor.                   By October 1, we will enroll one crore people.  The Swasthya                  Bima Yojana would provide medical cover to the poor; 11 States                  have signed it up. The Janashree Bima Yojana would provide                  health and life cover to millions of women who are members of                  self-help groups.  So, why did the NDA not introduce a single                  scheme for the unorganised sector?  
                                  Finally, never before in the history of this                  country, has any Government undertaken a loan waiver scheme of                  the size and scale that has been undertaken by this Government.                   I am happy to report to this House that on the basis of data                  gathered from the participating financial institutions, these                  are our conclusions. Debt waivers have been granted for a sum of                  Rs. 50,254 crore.  Debt relief has been granted for a sum of Rs.                  16,223 crore.  Thus, the total amount of debt waiver and debt                  relief is Rs. 66,477 crore. 
                                  Sir, the total amount, I repeat, granted under                  debt waiver and debt relief is Rs. 66,477 crore.  Among the                  beneficiaries, the number of small and marginal farmers is                  2,98,05,305, and the number of other farmers is 65,81,818.  Thus                  the total number of beneficiaries is 3,63,00,000.  
                                  Sir, the hon. Members will note that I have more                  than fulfilled my promise made to this House.  But for the loan                  waiver and debt relief, these three crore and sixty-three lakh                  farmers would not have been entitled for loans, and they are                  being given loans.  That is reflected in the increase in the                  sowing area, and that would be reflected eventually in the                  increase in food production at the end of the year.  
                                  Sir, this debate naturally turns on an agreement                  that we have signed with the US. We should remember that India                  signed agreements not with just one country.  It has signed                  agreements with more than one country.  We have signed an                  agreement with the US, we have signed an agreement with France,                  and we have signed an agreement with Russia.  As the External                  Affairs has said, we need to cross two stages before we can                  operationalize any of these agreements.  The first is the                  safeguards agreement of the IAEA, and the second is the waiver                  from the NSG.   
                                  Questions were asked about the 123 Agreement and                  the Hyde Act.  Let me explain the terms which I understand, and                  I would earnestly request the hon. Members to just lend me his                  ears for a couple of minutes.  These are not very complicated                  legal issues.
                                  In 1954, the U.S. adopted the Atomic Energy Act.                   That Act prohibits the US from cooperating on nuclear matters                  with any country until certain conditions are fulfilled.                   Section 123 authorizes the President of the US to exempt the                  proposed agreement from the conditions.  That is why, this                  agreement is called ‘123 Agreement’.  The Hyde Act was passed in                  2006 and it became the law in December, 2006.  Please mark the                  date.  The 123 Agreement text was agreed between India and the                  US on August 1, 2007.
                                  So, the 123 Agreement is an agreement after the                  Hyde Act came into force.  In the US, it is a well-accepted                  Constitutional principle, well enshrined that while passing a                  Bill into law, the President may issue a signed statement                  asserting his Constitutional prerogative powers and refusing to                  abide by any provisions of the US Act.
                                  We are not concerned with the provisions of the                  US Act nor are we concerned with what the US President said.                  That is their domestic matter.  But the  fact is that the US                  President issued a signed statement when he signed the Hyde Act                  into law.  Six months later, we agreed to the text of the 123                  Agreement.  The question is, what is the status of the 123                  Agreement.  In the US, the status is quite clear.  Every US                  commentator, every US newspaper, every analyst has said that the                  123 Agreement is not inconsistent with the Hyde Act because,                  according to the White House, when properly construed, the later                  123 Agreement nearly flushes out the details for the US-India                  Nuclear Cooperation, and then the 123 Agreement dwells upon the                  exceptions carved out in the Hyde Act, and once the Congress                  approves the 123 Agreement, then the Agreement and the Agreement                  alone, will delineate  the specific rights and responsibilities                  of the US and India as a prevailing law that governs and                  controls the Agreement.
                                  Now, look at it from our point of view. This is                  the US interpretation; this is the interpretation, which I rely                  upon because that is the way the US looks at it.  The 123                  Agreement alone will delineate the rights and responsibilities                  of the parties.  Look at the way that we can look at it from the                  Indian law point of view.  The 123 Agreement is, according to                  Article 2.5— and I urge you to read it — “to enable full civil                  nuclear energy cooperation between the parties.”  Please                  underline the words ‘to enable’.  It is an agreement to enable                  full civil nuclear energy cooperation between the parties.  It                  contemplates such cooperation on an industrial scale or a                  commercial scale.  Under Article 16, the Agreement enters into                  force on a date on which the parties will exchange diplomatic                  notes, informing each other that they have completed all                  applicable requirements.  The legal status of the 123 Agreement                  is that it has not yet entered into force.  It will enter into                  force after India and the United States notify each other; and                  they can do so only after completing all applicable                  requirements.  It is, therefore, an enabling agreement.  And,                  even after it enters into force, you would have to enter into                  further agreements for industrial or commercial scale                  cooperation in nuclear energy.
                                   The next question is: How do you interpret under                  our law and international law, the 123 Agreement and any earlier                  agreements? Article 16.4 of the 123 Agreement says: “The                  Agreement shall be implemented in good faith and in accordance                  with the principles of the international law.”  Please underline                  that.  The Agreement shall be interpreted and implemented in                  accordance with the principles of the international law. Under                  the customary international law as well as the Vienna Convention                  on the Law of Treaties, any party may not invoke the provisions                  of its internal law as justification for its failure to perform                  a Treaty. The 123 Agreement is a Treaty.  The Hyde Act is an                  internal law.  You cannot invoke the Hyde Act  in order to                  refuse to perform your obligations under a Treaty.
                                  And further more, when the 123 Agreement is                  ratified by the US Congress, it is up or down vote, it is                  ratified by the US Congress, it will be the last expression of                  the Legislature on the subject and under principle, which is                  known to every lawyer, the last expression of the Legislature                  will prevail over any earlier law passed by the same                  Legislature.
                                  Besides, under Article 6(2) of the US                  Constitution, all treaties made or which shall be made under the                  authority of the United States shall be the supreme law of the                  land. In any view of the matter, the Hyde Act does not bind                  India. It cannot interfere with the implementation of 123                  Agreement. The 123 Agreement alone will delineate the rights and                  responsibilities between India and the US. It will be the last                  expression of the Legislature, and under the Vienna Convention,                  we are bound only by the 123 Agreement.
                                  The UPA-Left Committee held nine meetings between                  September 11, 2007 and June 6, 2008. At the fourth meeting on                  October 9, 2007, the CPI(M)’s Members noted that the Left                  Parties were not opposed to a safeguards agreement on principle                  just as they have not been opposed to the separation plan.
                                  Their objection continued to be to the 123                  Agreement. This issue was discussed at the fifth meeting on                  October, 22, 2007 and at the sixth meeting on November, 16,                  2007. At the sixth meeting, after the exchanges, it was decided                  that the impact of the provisions of the Hyde Act and the 123                  Agreement on the IAEA Safeguards Agreement would have to be                  examined, and since it requires talks with the IAEA Secretariat                  for working out the text of an India-Specific Safeguards                  Agreement, the Government will proceed with the talks and the                  outcome will be presented to the Committee. That is precisely                  what this Government has done.
                                  It went to the IAEA Secretariat for talks. It                  agreed upon a text. It froze that text. We came back to the                  Committee on March, 17, May 6 and June 25, and we have reported                  the outcome of the talks to the Committee. We have done nothing                  in a non-transparent manner. We have done it in the most                  transparent manner. We have taken everybody on board and we have                  told them that this is the outcome of the talks, and now the                  text is available.  The ISSA text is available.
                                  None of my comrades were members of the                  Committee. We know what happened in the Committee. We have said                  the ISSA text will be made available on the same day it is                  circulated officially to the Members of the IAEA Board. When we                  decided to go forward and circulate it to the Members of the                  IAEA Board, on the same day it was made available in India. The                  text is now available in India. 
                                  Sir, the short question is – does India want to                  end the nuclear isolation which we find ourselves since 1974,                  more so since 1998? What did the hon. Prime Minister Shri                  Vajpayee say in the United Nations General Assembly? I quote.                  After referring to the tests he said : “These tests do not                  signal a dilution of India’s commitment to the pursuit of                  nuclear disarmament. Accordingly, after concluding this limited                  testing programme, India announced” - India, the Government of                  Mr. Vajpayee announced – “a voluntary moratorium on further                  underground nuclear test explosions”. 
                                  “We conveyed our willingness to move towards a                  de jure formalization of this obligation in announcing a                  moratorium. India has already accepted the basic obligation of                  the CTBT. India is now engaged in discussions with our key                  interlocutors on a range of issues including the CTBT. We are                  prepared to bring these discussions to a successful conclusion                  so that the entry into force of the CTBT is not delayed beyond                  September, 1999.” 
                                  Then he came to this House and made a statement                  on 15th December,                  1998. He says : “This House will be reassured that in the                  assessment of our scientists this stand” - that is converting                  our voluntary moratorium into a de jure obligation -                   “does not come in the way of our taking such steps as may be                  found necessary in future to safeguard our national security. It                  also does not constrain us from continuing with our R&D                  programmes nor does it jeopardise in any manner the safety and                  effectiveness of our nuclear deterrent in the years to come.”
                                  “In addition to the talks between Shri Jaswant                  Singh and Mr. Strobe Talbott” – they did have talks Mr. Malhotra,                  may be you forgot; the Prime Minister confirms that they had                  talks – “we have had detailed exchanges with France and Russia.                  Discussions have also taken place with UK and China at the level                  of Shri Jaswant Singh and at official level with Germany and                  Japan as well as with other non-nuclear weapon States. I have                  been in regular correspondence with President Clinton. President                  Clinton has also expressed to me his desire for a broad-based                  relationship with India that befits the two largest democracies                  of the world. I have fully reciprocated these sentiments.                  Indeed, our ongoing dialogue with the United States is geared                  towards that end. I am confident this House will want to wish it                  all success”. 
                                  What has this Government done? It has taken the                  dialogue forward. Today we have the 123 Agreement. The question                  is that, do we want to come out of the nuclear isolation? Sir,                  in this connection, I want to share with this House what China                  is doing. China’s electricity today is produced, 80 per cent                  from coal and 18 per cent from hydro power. Two per cent of                  China’s electricity comes from nuclear power. Mainland China has                  eleven nuclear power reactors in commercial operation. Six are                  under construction and several more are about to start                  construction. Additional reactors are planned including some of                  the world’s most advanced to give a six-fold increase in nuclear                  capacity, to at least 50,000 megawatt by 2020 and then – this is                  important – a further three to four fold increase to 1,20,000 to                  1,60,000 megawatt of electricity by 2030. The country aims to                  become self-sufficient in reactor design and construction as                  well as other aspects of the fuel cycle. 
                                  Moves to build nuclear power in China commenced                  in 1970 and the industry has now moved towards a steady                  development phase. Technology is being drawn from France, Canada                  and Russia with local development based largely on the French                  element. The latest technology acquisition has been from the US                  and France. A country with two per cent contributing nuclear                  energy towards total electricity.
                                  We cannot because there are some people in this                  country who do not want India to catch up with China, who do not                  want India to go ahead of China. There are some people who want                  China to become an economic super power but India should never                  become an economic super power. Sir, I have no hesitation in                  saying that I do not envy China. I want to emulate China. I want                  India to be an economic power and economic super power.                  
                                  Sir, when we talk about India, we should talk                  about only countries which are as large and as complex as India                  and that is China. We cannot talk about countries which are                  smaller than India or poorer than India. We must aspire to                  greater heights. Our ambitions must be large. When we talk about                  growth, we say that growth is a necessary condition not a                  sufficient condition. Let me give you some examples. Sir, China,                  for instance, has 29 million hectares under rice cultivation.                  India has 43 million hectares under rice cultivation. China                  produces 6.26 metric tonnes per hectare. The world average is                  4.08 metric tonnes per hectare. India produces 2.1 metric tonnes                  per hectare. China has 23.4 million hectares under wheat while                  India has 25 million hectares under wheat. China produces 4.42                  metric tonnes per hectare. The world average is 2.7 metric                  tonnes per hectare. India produces 2.72 metric tonnes per                  hectare. When I say we must grow, we must grow more wheat; we                  must grow more paddy; and we must emulate the best in the world.                  China produces 419 million tonnes of steel. India produces 44                  million tonnes of steel. China produces 2,482 million tonnes of                  coal. India produces 427 million tonnes of coal. China generates                  2,834 megawatt hour of electricity; India does 726 megawatt                  hour. When I say we must grow, we must produce more coal,                  produce more steel and generate more electricity. That is the                  only way we can bring economic justice to the people of this                  country. 
                                  The BJP and NDA seem to agree that we should end                  our nuclear isolation. After all these interruptions, no one is                  clear about the stand of the Left Parties. Let the two groups.                  Yet the two Groups are voting together against this Motion of                  Confidence. The NDA has no problem with a strategic relationship                  with the US. The Left Parties are ideologically opposed to any                  partnership — strategic or otherwise — with the US. Yet the two                  Groups are voting together against this Motion of Confidence.                  The NDA believes, as I listen to them, that India should become                  a nuclear weapon State, whereas the Left Parties have always                  been opposed to nuclear weapons and nuclear weaponisation. Yet                  the two Groups are voting together against this Motion of                  Confidence. The NDA says that if it comes to power, God forbid,                  it will renegotiate the Agreement. The Left Parties say that                  they will do everything possible to scuttle the Agreement now                  and for ever. Yet the two Groups are voting together against                  this Motion of Confidence. I doubt if in the history of India’s                  Parliament we have seen anything more bizarre than these two                  Groups voting together against the Motion of Confidence.
                                  Yesterday, from                  the Speaker’s Chair, you welcomed one of the youngest Members of                  Parliament. There are millions of young boys and girls, and                  young men and women out there who are looking towards this                  Parliament and looking to the future. We can make our future;                  the future is in our hands. We can make our future, if we decide                  to have the vision and the farsightedness that can take this                  country forward. In the late 1980s and in the early 1990s, my                  beloved leader, Shri Rajiv Gandhi, followed by Shri Narasimha                  Rao and Dr. Manmohan Singh blazed a new path which made India a                  stronger economy than what it was 15 years ago. Today, this                  Government under Dr. Manmohan Singh’s leadership is charting out                  a new path which will end India’s nuclear isolation, which will                  pave way for India becoming an economic super-power.I ask this                  House to give a resounding vote of confidence to the Prime                  Minister. Thank you.