Colombo, Mar 19: A senior World Bank economist said on Thursday that he believed the new BJP government led by AB Vajpayee would continue with economic reforms."There is a wide acceptance among the entire political spectrum that further reforms are necessary," John Williamson, the World Bank's chief economist for South Asian region told a news conference in Colombo.``I don't see a political scenario at the moment under which the reforms are going to be interrupted," he added. The new government's National Agenda unveiled on Wednesday reaffirmed that economic reforms would continue but with a "strong swadeshi thrust."
Williamson said the new government was more likely to promote internal liberalisation than allow foreign investments in areas like consumer goods.
"The new government, just by pronouncements, would be more sympathetic to internal liberalisation in terms of deregulation and privatisation," Williamson said.
``It looks it (the government) does not want the Indian way of life threatened bytoo much investment by Coca Cola and other consumers goods," Williamson said. "The situation is not clearly anti-liberalisation." India launched far-reaching economic reforms in 1991, but critics say quick changes in governments in the past two years have slowed their speed.
Williamson said while the government might discourage investments in the consumer sector they were unlikely to go back on the commitments already made."Since next year's investments might well have been finalised, the effect (on foreign investments) will be felt later than next year,' Williamson said.
He said though India had a high savings rate the country had welcomed foreign investments since it wanted access to foreign technology and markets.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
