Economic reforms to continue: PM

NEW DELHI, NOV 29: The setback suffered by the Bharatiya Janata Party at the hustings will have no impact on the momentum of economic reform...

NEW DELHI, NOV 29: The setback suffered by the Bharatiya Janata Party at the hustings will have no impact on the momentum of economic reforms, prime minister Atal Behari Vajpayee said here on Sunday. Speaking at the inaugural session of the India Economic Summit organised by the World Economic Forum and the Confederation of Indian Industry, Vajpayee said his government has successfully depoliticised the economic agenda.pSensing the anxiety in the minds of the industrialists present at the conference, Vajpayee sought to be at his reassuring best: quot;Whatever is happening now is a sign of vibrancy of Indian democracy8230;do not be overly influenced by the democratic drama of the day. Look at the inherent strengths of India and the huge opportunities which will grow, irrespective of the political vagariesquot;.

Stating that the government8217;s agenda was to catalyse large flows of foreign and NRI investments in priority areas, Vajpayee said his government would act quot;a lot faster and firmerquot; on its economic agenda in thecoming months. quot;We would be second to none in establishing a transparent framework in which foreign investment can flourish,quot; he said.

The prime minister also outlined a 12-point medium-term economic agenda to achieve 7-8 per cent growth. The agenda would seek to rein in fiscal deficit, increase domestic savings to 30 per cent of GDP, clear infrastructure bottlenecks and strengthen financial and banking sectors by making them more transparent and accountable.

The agenda also includes the government8217;s resolve to restructure the public sector enterprises, encourage massive private investments in agriculture, create strategies to strengthen the popular support base for reforms and generation of employment through small-scale, village and khadi industries and housing construction.

In preparing India to face the challenges of globalisation, Vajpayee said his government will create policies to achieve a 7-8 per cent GDP growth through a strategy that ensures low inflation and high employmentgeneration.

Fiscal deficit would be reined in through a combination of measures like expenditure control and increased revenue buoyancy, he said. The agenda also seeks to encourage high long-term export growth to increase India8217;s share of world trade. Attempts would also be made to strengthen quot;our negotiating skills in settling trade disputes and representing our interests in trade fora,quot; he said.

The PM asked the delegates present at the seminar to discuss in terms of figures and specific sectors and projects what amount of foreign investment should flow into India over the next 15 years and how such investments could be mutually beneficial. Pointing out that India has an unbroken record of honouring all its global financial obligations, the prime minister said the country, with its middle class nearing the size of Europe, offered unlimited opportunities for investors.