Asked whether the subsequent disinvestments would also be in the domestic market, Sinha said, "No, the government has not yet taken a decision." The government has so far managed to raise only about Rs 250 crore by divesting its stake in Container Corporation of India (Concor) in the domestic market.

Sinha said that the centre has embarked on second-generation reforms, including public and insurance sector reforms, which are harder and painful and aimed at setting right the economy. He added that the first-generation reforms were carried out in the last six to seven years and hisgovernment faces the hard task of second-generation reforms.

The finance minister welcomed the national consensus on economic development and its depoliticisation and said that the economy is pegged to grow at a better rate next year with the improving global exports scenario and country's agricultural output. "GDP growth should be around 6 per cent. The rabi season is expected to be good and agriculture will give a stimulus to the economy," he said. Sinha said that the decline in exports is likely to be arrested in 1999 and would begin increasing and that the country would maintain a better growth rate.

On inflation, Sinha said if fiscal and monetary policies were responsible for inflation, then there would have been an across the board rise in prices. The primary products wholesale price index was up from 1 per cent last year to 17 per cent this year which caused high inflation as primary articles have large weightage in the consumer price index.

When reminded about his assertions that things would beset right within six months after the BJP came to power, Sinha said: "The slowdown (which began in mid-1996) was much worse than I had imagined." He said that the centre was still examining the issue of extending greater powers to Sebi for regulation of plantation companies operating collective investment schemes.