In a rare televised address to the nation, he insisted that the concerns over allowing FDI in retail were "baseless" as there is enough scope for big and small retailers to grow.
Recalling that fears were created in 1991 when he as Finance Minister had initiated economic reforms, Singh said those behind the scare "did not succeed then" and "they will not succeed now".
He justified the hike in diesel price and cap of six cylinders on subsidised LPG, saying these were required in the difficult economic situation and to avoid increase in fiscal deficit that would lead to steep rise in cost of essential commodities.
"No government likes to impose burdens on the common man... At the same time, it is the responsibility of the government to defend the national interest, and protect the long term future of our people," Singh said.
"We have much to do to protect the interests of our nation and we must do it now. At times, we need to say 'no' to the easy option and say 'yes' to the more difficult one. This happens to be one such occasion. The time has come for hard decisions," he said, adding, "for this, I need your trust, your understanding and your cooperation."
He recalled that the last time the nation faced this problem was in 1991. "Nobody was willing to lend us even small amounts of money then. We came out of that crisis by taking strong, resolute steps. You can see the positive results of those steps," he said.
"We are not in that situation today, but we must act before people lose confidence in our economy," Singh said.
Underlining that the government was at a "point where we can reverse the slowdown in our growth", he said, "We need a revival in investor confidence domestically and globally. The decisions we have taken recently are necessary for this purpose".
He made the 15-minute address to the nation in Hindi and English against the backdrop of uproar over the recent decisions to allow FDI in multi-brand retail, Rs 5 increase in diesel price and cap on subsidised LPG cylinders.(MORE)
