PM raps bureaucracy, pledges reforms

"I am disheartened that, overall, the systems of implementation still works with the same old mindset… in which there is no transparent accountability to meet stipulated targets and deadlines," he said. He said while people were impatient for results, the government machinery showed no sense of urgency. India has been criticised on several occasions for making all the right noises about reforms, but being extremely slow on delivery.

"If the experience of the past ten years has taught us one lesson, it is that reform of the implementation system must be made an integral part of the reform process itself," Vajpayee said.

‘‘There is no transparent accountability and no drive to meet stipulated targets and deadlines in this mindset. Our people are impatient for result. The government machinery, however, shows no such sense of impatience and urgency," he said.

Vajpayee said there is a need to announce a timetable and set milestones for each department to reduce the sanctioned strength of its staff by at least 10 per cent by 2004. "Many government run companies have adopted attractive voluntary retirement schemes. We need a similar one for the government too," he said.

The Prime Minister also castigated the Indian industry saying that many industries have not improved their production processes to make good quality products at affordable prices to enhance consumer satisfaction. Very few companies, except pharmaceuticals, have invested four to five per cent of their revenue on research and development. ‘‘Indian companies should adopt high standards of transparency, disclosure and corporate governance to sustain investor and shareholders confidence,’’ he said. "In this context, I must also express my dismay that there are some companies that have taken money from shareholders, banks and financial institutions and misused it. This does not create any public goodwill for business."

‘‘My government is committed to carry forward the next and more difficult phase of economic reforms including removal of all bottlenecks to faster growth of infrastructure but,’’ he said. In the same breath, Vajpayee asked the industry to get its act together.

"I would like to take this opportunity to reassure you that my government believes in solving the problems at hand, and not in evading them," Vajpayee said.Partnership between government and industry is the most important precondition to accelerate growth rate to meet the nine per cent yearly target.

"The government must respond to new challenges quickly and flexibly. At the same time, industry must also recognise its responsibilities by putting its house in order and act with vision and foresight," he said.

Taking up specific industry sectors, Vajpayee said power-related issues require greater co-ordination with state governments and he proposed to convene a special meeting of chief ministers so that an agreed programme for power reforms can be finalised.

The subsisting problems of telecom sector are being resolved. The government proposes to take further measures to accelerate work on the National Highway Development Project. Civil aviation will also see some important reforms in the coming months.

The Prime Minister said a high-powered task force is looking into the issue of increasing the number of well-trained professionals in the information technology sector to meet the growing demands of both the domestic and foreign markets. The government will also initiate necessary action to promote the pharmaceuticals and biotechnology industries where India has a strong competitive advantage.

The government is also very much aware of the need to modernise labour laws for the larger benefit of the economy. The Prime Minister said he was confident that the measures proposed to be taken by his government will spur demand and accelerate the economy’s growth rate.

He, however, added that the Indian industry also needs to do a lot of soul-searching. Taking off from where he left at the India Economic Summit last month, Vajpayee said, "The track record of Indian industry in adjusting itself to the forces of global competition has been a mixed one."

Vajpayee asked the Indian industry to set aside a significant part of their earnings and human resources to improve conditions of education, healthcare, sanitation and community welfare.