‘This is a crisis in which India and China must work together’

We expressed satisfaction at the work of our special representatives and we both agreed that we should instruct our special representatives to expedite the process. In the meanwhile, both of us reaffirmed our desire that peace and tranquillity should be maintained on the border as agreed earlier. So, I had a very good meeting on bilateral issues. We also discussed the possibilities of our two countries working together in regional and international forums and I drew his attention to the initial statement that Prime Minister Wen Jiabao and I had signed in January in which we had expressed that there are immense possibilities for the two countries working together to coordinate our thinking at regional and multilateral forums.

We had an extensive discussion on the international energy crisis. We exchanged views. Both of us agreed that this is a crisis in which India and China should remain in contact and even work with like-minded countries to find practical/pragmatic solutions to the problems that have arisen.

•On nuclear cooperation with China:

We did not raise the issue.

•On early end to Parliament session:

We would like Parliament to meet as often as there is a broad opinion among members of Parliament. And in this case, it is the decision which has been taken by major parties working together… Most political parties are in election mode. They want to go and work for elections. In the meantime, we have agreed that Parliament will reconvene in December… Elections will be held on schedule… This decision (on adjournment) has been taken after full consultation with the main opposition party and other political parties.

•Will he contest Lok Sabha elections?

We will decide that when the time comes.

•On regional riots, Mumbai violence:

Let me say this, I don’t want to criticise any government while I am on foreign soil. It is very unfortunate that these incidents have taken place. I would appeal to all political parties, all thinking men and women in our country to realise the gravity of the situation. Any regional tension or animosity is an act of disservice to our country. All of us have an obligation, regardless of our political affiliations, to do nothing which will work against the unity, integrity and social cohesion of our country.

•Four-and-half years of UPA rule:

We have had a reasonably good term. I would not deny that over the last few months, inflation has become a problem. And recently because of global factors, the financial crisis is having some effect on our economy. Therefore, we are obliged to take corrective measures. To say that I am not worried would not be correct. It is my duty as Prime Minister to worry when things don’t go as planned.

•On terrorism and religion:

I would urge the media and all thinking segments of our population not to link terror with any one particular religion. Terrorists have no religion. Regardless of their religion, we have to deal wholly and effectively with terrorism. We will handle it that way. But let us not link terror to any particular community. This is not the way to solve any problem. If this is not handled properly, it has serious divisive potential. We cannot afford such a division, so all segments of public opinion, all political parties must work together to see that this communal divide does not get widened.

•On his interaction with Prime Minister Gilani of Pakistan:

I raised all issues which have a bearing on our bilateral relations and I would say that there was a near complete meeting of minds. We had extensive discussions on trade, we expressed happiness at the trade routes being opened in Jammu and Kashmir. We expressed the wish that trade should be expanded. We discussed the problem of visa liberalisation and people-to-people contact. He told me about the discussion on terror in the Pakistan Parliament, that for the first time, the Pakistan Parliament unanimously passed a strong resolution against terrorism, that Pakistan territory will not be allowed to be utilised for terrorist activities against neighbours. It was a good meeting but we have yet to see how effectively these are implemented. I wish the new democratic government in Pakistan well. We would like them to succeed. Pakistan is in serious difficulty and is going to IMF. We will support Pakistan getting help from the IMF.

•On the MNS hate campaign:

I wouldn’t like to discuss all these issues in public. The situation requires tactful handling. Whatever is necessary to restore calm, to restore respect for the rule of the law should be undertaken. I would not like to comment on internal matters in detail while I am on foreign territory.

•On flak from the Left over the financial crisis:

I am afraid I don’t agree. Strengthening India’s banking system, strengthening India’s insurance system has enabled us to deal with the crisis more effectively. I beg to differ. But I am not very happy to part company with our Left colleagues. In my view, India is faced with difficult problems. All parties which are committed to secularism and nationalism must work together to deal with the communal and regional divide which is being sought to be created by some anti-social elements. There are issues which require all political parties which think alike to sit together and I very much hope we can find ways and means to work with our Left colleagues.

•How long will the financial crisis impact India?

Well, it all depends on how long it takes the world community to restore confidence in global financial markets. We are not in complete control. There are bigger players and we are victims of that. The crisis is not of our making. It is a crisis that originated in the US and Europe. The type of integrated world economy we live in, we are not immune and I had mentioned it in Parliament earlier this week and I repeated that same sentiment in Beijing.

•Are the approaching Assembly elections the semi-final?

All elections are in one way or the other a test of popularity. But that is part of the democratic process one has to go through.

•On land and farmers:

India needs to industrialise. Without industrialisation we cannot find solutions to our employment or development problems. The real issue is what are the terms on which land is acquired. It should not be acquired at prices which keep the farmers dissatisfied. There should be an increasing attempt to reward the farmers appropriately, perhaps giving them a stake in the enterprises which come into existence on the land that is acquired. The rehabilitation policy, the amendment to the Land Acquisition Act, the Bill is before Parliament. I would say that this is not an issue which should create friction and division among parties. Because India must industrialise to realise its destiny. The only thing is industrialisation cannot be on the backs of poor farmers. They should be given remunerative compensation wherever land is acquired.

On the ASEM proceedings:

India is a major emerging economy. This was the first time we were there and made our presence felt. On all issues, there was great eagerness to hear where India stands — whether it was the issue of global financial crisis or whether it was the millennium development goals or the issue of sustainable development. A great deal of attention was paid to India’s viewpoint. And this is a forum for dialogue, a forum where major powers from Asia and Europe can sit together, deal with problems which are affecting them both. I think India can play a very important role in creating a climate… which will enable us to deal more effectively with our own problems.

•Will he be attending the Washington meet to tackle the crisis?

I have an invitation form President George Bush. In fact, President Bush spoke to me while I was in Tokyo. I also discussed this issue with Chinese President Hu Jintao. But I will take a final call after discussing this with my colleagues when I get back.

•On Tatas exiting Bengal for Gujarat:

We are a free democratic country. It is certainly sad the circumstances in which Ratan Tata had to move his project. But entrepreneurs are free to decide the location of their plants. In a democracy, in a market economy these things happen. These are the decisions which cannot be forced down the throat of unwilling entrepreneurs. It is sad because a lot of work had been done in Bengal and there was a date fixed for Nano’s appearance in the market. So that process was delayed. To some extent, it was a sad thing.

•On communal violence, Special Powers Act:

We prepared a Bill on communal harmony. The Bill was submitted to Parliament but several minority groups came back and said this is not a legislation that is to our liking. So because of a lack of consensus… This was a legislation meant to apply some balm on the communal situation. But if the minority communities say they are not satisfied, if NGOs say they are not very happy, so there is this delay. And we have not been able to resolve these tensions.

As far as the Armed Forces’ special powers are concerned, it is true that in the wake of the Manipur agitation, we had appointed a group, but quite honestly the situation in the Northeast, the situation in Manipur, even the government of Manipur, which has withdrawn the Armed Forces Special Powers Act being applied to Imphal, is also of the view that this cannot be done away with until the situation improves. We have problems in Jammu and Kashmir, we have problems in Northeast. Therefore, I cannot take these risks with the security of our country.

•Whether India can be insulated from the global financial crisis:

I cannot say it has bottomed out. I really don’t know. At the last ASEAN meeting, where President Hu Jintao was also present, I had said that the world is sitting on very dangerous material. That next year when we meet we will be discussing a global financial crisis. Understanding that concern, I have been saying for the last 18 months that there are clouds on the horizons which if not tackled properly could create trouble for the global economy. But as far as our economy is concerned, we have built social safety nets, the very fact that we today have an employment guarantee programme in all rural areas, the fact that we have given handsome prices to our farmers, the fact that we have widened the social security net.

We also have infrastructure projects, investments in railways, investments in roads, investments in ports. We have built enough stabilisers in our system.

•On economic legacy, unfinished reforms:

I think reforms cannot take place in a political and economic vacuum. The situation has been such that oil prices shot up in a manner that if I had passed on the whole burden to people at large, there would have been reckless inflation. That would have been far more counter-productive than our position to pass on only a limited amount of increase to the final consumer. It is certainly true, if you look at the economy from the traditional point of view, below the line fiscal deficit has increased, but in the situation in which we are placed now, it is a definite advantage. It is not a disadvantage.

I think we are in a typical Keynesian situation where there is a lack of demand. Private sector demand is very weak, but strong government demand, both for social services and for investments, will provide the essential stabilisers that our country needs in a time like this.

We would have liked to do a lot more. But I think politics is the art of the possible.

•Communal riots, action against only one community:

I am very sorry that such a feeling exists. Those who have read newspapers about Malegaon and others would consider that this is a one-sided view. Terrorism, whichever section indulges in it, has been prosecuted, regardless of the community to which they belong.