‘No hiking of rates, will set up Price Stabilisation Fund’

We will also leverage technology to map crop production pan-India and to transmit real-time data on prices, production and markets. I am confident, with this suite of short and long-term measures, the issue of inflation can be efficaciously addressed. In the overall context, our focus will be on addressing supply-side issues rather than trying to curtail inflation via monetary policy instruments and hiking interest rates.
On both these counts — inflation and interest rates — our track-record during the NDA regime was formidable. We inherited nearly 7 per cent inflation in 1998 and brought it down to under 3.9 per cent by 2004. Similarly, we brought down interest rates from 12.01 per cent to a comfortable 5.71 per cent.

What should be the focus areas to revive the economy?
The fundamentals of the economy have been wrecked — we are going through persistent high inflation, manufacturing/core sector has seen contraction, interest rates remain high and growth is under 5 per cent.
Specific areas of focus will be reigniting the investment cycle, renewed impetus to manufacturing, accelerated infrastructure buildout, skill-development and a thrust to tourism. This will lead to massive job creation and a step-change in income levels and social indicators.

What would be your strategy on food and fuel subsidies?
We have made it clear that the government is, first and foremost, for the poorest. We cannot afford to shun our responsibilities towards them… we will review and amend programmes as required. Our social-welfare programmes need to be targeted to ensure that they are reaching out to the intended beneficiaries. Our focus will be on plugging leakages via leveraging technology and improved system-design. In the long-run, with increased economic activity, job creation and empowerment of the poor, I am certain the outlay on subsidy will come down.

What steps would be taken to expedite project clearance?
The focus will be on completion of existing projects which are hanging in the balance. You will be shocked to know that there are some projects pending from as far back as the 1970s! The priority will therefore be on mobilising resources and clearing impediments.
We envisage that increased government spending on infrastructure, especially on projects like the ‘Diamond Rail Quadrilateral’ will reignite the investment cycle and revitalise these projects. A single-window clearance system and enabling transparency, as clearly outlined in the BJP manifesto, will also expedite project clearances.

The role of the environment ministry will become even more prominent. Environment laws will be implemented in an unambiguous manner and the ministry’s working will be closely linked with that of other ministries such as those dealing with natural resources.

India Inc has raised several objections, including the mandatory CSR provisions, in the new Companies Act. Are you planning to revisit the Act to resolve the differences?

We welcome all suggestions and are happy to reconsider any clause which may be deemed unfair, if necessary, after consulting all stakeholders.

Are there plans to go for duty correction in auto and other sectors?

There is clear understanding that our tax regime needs an overhaul. There is no scope for tax terrorism and the duty regime will be rationalised, where required, to ensure that our manufacturing sector gets the impetus it needs to drive job creation. I cannot comment on which sectors call for a duty correction or do not, but I can assure everyone concerned that our policies will be well thought out keeping in mind the fact that boosting our domestic manufacturing sector and employment is foremost on the BJP’s agenda for the nation. These reform decisions will be comprehensive and holistic, not taken in a silo.