Parties united on the future of economic reforms
Our Bureau
CHENNAI, January 9: All the three major political forces to reckon with in the ensuing elections - Congress-I, Bharatiya Janata Party (BJP), and United Front (UF) - are in agreement on continuing the economic reforms initiated in 1991, albeit with some changes.With this as the underlying principle, the three political groups unveiled their respective economic programmes which spoke for speeding up of reforms, dismantling of the Foreign Investment Promotion Board (FIPB), and appropriate reforms at the bureaucratic level. Addressing the fifth plenary session of the Partnership Summit, organised by the Confederation of Indian Industry (CII), here on Friday, United Front leader and the Union minister for industries Murasoli Maran stressed the need to achieve an eight per cent growth in the gross domestic product (GDP). United Front, a 13-party combine, had set set its sights on eradicating poverty, achieving growth and rendering social justice. Specifically, the Front proposed to close down the FIPB and
thereby make it irrelevant, create a new category for medium industries as also scrap the Industrial Development and Regulation Act (IDR). With a dramatic touch to his half-hour address, Maran added, "once all the licences are abolished, the industry ministry will have to be closed down. Then, there will be need for better coordination among all the departments." Stating that the promises of the United Front were based on its achievements in the last 18 months, Maran, who represents Dravida Munnetra Kazgaham (DMK) in the Front said: "Prospects for the current year (1997--98) are still bright and we should try to aim for more growth. It would be possible to achieve eight per cent GDP growth if domestic savings increase from 26-28 per cent and gross investment moves up by 28-32 per cent." According to him, the Indian economy could absorb $15-20 billion of foreign direct investment with eight per cent GDP growth. Allaying apprehensions about proliferation of investment in consumer goods sector and
countering the opposition charges, Maran said: "In the last 18 months, approvals were accorded for $22.4 billion (nearly Rs 81,000 crore), out of which 70 per cent was for projects in the priority and core sector. Only 11 per cent was for consumer goods industry and even out of that 75 per cent was in the food processing sector, passenger cars and consumer electronics." "We need not worry that foreign investment will grab our economy. It will not affect our sovereignty. Foreign investment will help create new manufacturing facilities, bring in technology for backward and forward integration and create more jobs. We want the reforms to be painless, want more gain than pain, and are in need of support rather than criticism," he said. Maran added that states would become the driving forces of the reform process and the Centre would not be allowed to soft-pedal the issue. "Our agenda is to ensure that India becomes the third largest economy in the world," he added. Stressing the need for a stable economy
instead of a banana economy, the DMK strongman also dispelled doubts about "evils" associated with multinational companies and added that domestic companies would be offered protection in specific circumstances. "We need not fear multinationals as several Indian companies have started investing abroad." Indian companies have invested more than Rs 1,500 crore by way of equity participation in 600 different joint ventures abroad, he added. In order to demonstrate the consensus among the United Front constituents on the continuance of reforms, he said, the Communist ruled state of West Bengal had projects set up by a veritable who's who of global majors. In a much shorter speech, senior BJP leader and former Union minister of finance Jaswant Singh emphasised that subsidies to the agriculture sector should be continued as the sector formed the back bone of the Indian economy. Another highlight of his speech was the BJP's proposed effort to bridge the time gap between pronouncement of a policy and delivery of
the benefits. According to him, as far as the BJP was concerned, economic reforms would remain incomplete without simultaneous reforms on quality and "redesignation" of the role of the government. The government's role should change from that of controlling authority to a body for encouraging growth and extending support to the industry. Pitching his case for a stable government, he took strong exception to the recent statement made by Prime Minister I K Gujral that political uncertainty did not affect economy. He said he was for a "bonfire" of superfluous laws in the country. The BJP, he stressed, would address the physical, social, fiscal infrastructure problems in the country and attempt to usher reforms at the bureaucratic levels. Rajesh Pilot, Congress leader and former union minister began his speech with an appeal to all political parties to support reforms as the country could not do without them. The thrust of his 10-minute speech was a promise that if Congress-I was elected to power it wouldspeed up reforms. Other priorities of the party were development of infrastructure, percolation of benefits accrued through reforms in the rural sector. The Congress-I, he added, was in favour of a level playing field for the domestic industry and did not want widen disparities between the rural and urban populace. Corporate bosses ain't tickled Even as three major political parties presented their economic agenda, corporate India seemed mighty disinterested. Overheard after the presentation of the economic agenda by the three major political parties: "Well, Jaswant Singh has a great sense of humour. But what did he say?" "The economic agenda? We have been hearing about it non-stop these two years. First it was the Deve Gowda government and the Common Minimum Programme, then I K Gujral came and we had some more of it. So what's new?" "It was obvious that Rajesh Pilot was just a mouthpiece." "I don't know why three presentations were made. After the first the other two should have contented
themselves with saying ditto." "There was no economic agenda. Maran went on and on about the GDP, Jaswant Singh concentrated more on the lights and Pilot did not know what to say." But, when it came to voting (during the poll conducted by this newspaper) the delegates sat up with a snap. Interest was high and response was extremely positive to the idea of a snap poll. Ballot papers disappeared fast from the hands of the poll team and were returned with enthusiastic queries on when the results would be announced. Some were disappointed when they learnt they would have to wait till the next morning to find the results of the poll.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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