FM8217;s hard-sell on BJP in US

WASHINGTON, April 15: With a clutch of leery and long-suffering foreign investors hanging on to his every word, India's new Finance Minister...

WASHINGTON, April 15: With a clutch of leery and long-suffering foreign investors hanging on to his every word, India8217;s new Finance Minister Yashwant Sinha pledged that the Bharatiya Janata Party government would go ahead 8220;full throttle8221; with economic reforms despite alarmist reports about the so-called swadeshi hand in the party. In the first foray by a BJP minister to foreign shores, Sinha told a highly sceptical audience of American and NRI investors 8212; who have seen four governments in the six years since the reforms were initiated 8212; that they had little to fear from the BJP, the 8220;earliest proponent of liberalisation even during the halcyon days of socialism.8221;

8220;It surprises us when we are projected as anti-reform. Let there be no doubt about how we shall deal with the situation8230; we are committed to broadening, deepening and accelerating the reforms,8221; Sinha told a meeting organised by the Confederation of Indian Industries CII here this morning.In remarks of impressive pith and clarity, Sinhaexplained that 8220;swadeshi8221; was not a retrograde concept. It did not mean a retreat into protectionism, raising tariff walls, or closing the country to foreign competition. 8220;It is being pro-India without being anti-foreigner,8221; he clarified.

The Finance Minister outlined a few specific targets and steps to mollify the foreign investors who are now visibly fatigued by the turnover of governments and shopworn promises. He said the BJP government would seek to double foreign investment within this year. The government will also like to push the growth rate back to seven or eight per cent, again within this year. And fast track projects would be expedited within this year, if not within months.

Some of the upbeat pronouncements the FM made:

8220;We have come a long way, but we want to travel further.8221;

8220;It8217;s not business as usual, it8217;s a better business opportunity.8221;

8220;You can look at India as a long term, durable, trustworthy partner.8221;

Some of the participants were impressed andenthused. 8220;I feel confident again. He sounds quite genuine and sincere,8221; said Jayadev Raja of Iridium, which has invested Rs 450 crore already in a global satellite communications project in India and is awaiting licensing from the government since 1995.

Others were less sanguine. 8220;We have heard it all before. Actions, not words, are what we are looking for,8221; growled a power company representative whose fast track project has slowed to a grinding halt since it was first bruited in the early 90s.

Probably because he had been briefed before on the frustration of investors 8212; many of whom have aged in the numerous meetings they have attended with visiting Indian ministers and officials 8212; Sinha promised to build as soon as possible an investment regime as 8220;transparent, automatic and hassle-free8221; as possible. 8220;You won8217;t have to run hither and thither,8221; he assured the investors. Although the minister was at once convincing and engaging, the nature of the coalition left many uncertain about longevity ofthe government. Sinha8217;s own background as a former finance minister was also scrutinised keenly by participants.

8220;He sounds determined not to go down in history as the man who bankrupted India twice,8221; one observer remarked waspishly, referring to the BOP crisis in 1991 which forced the Chandrashekhar government 8212; in which Sinha was the finance minister 8212; to pledge Indian gold reserves abroad.

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But Sinha was not shy of talking about that trauma and using it as an example to show he was capable of taking tough decisions in national interest.

8220;That decision has chased me through the wilds of Indian politics. I am known as the person who pawned the family gold. But the important thing was we did not default, we kept our head above the water and we recovered from the crisis. It showed the will and determination of the Indian people and our policies,8221; he recalled.

The Finance Minister told the audience that the turnover of governments reflected the 8220;majesty of Indian democracy8221; but the days ofpolitical instability were over after BJP had taken over at the helm.