Addressing industrialists here on `propelling India into global leadership', Sinha said that the meeting was his first roadshow outside the Capital on generating support for the second generation reforms. The meeting was organised by the Federation of Indian Chambers of Commerce & Industry.Sinha said the government had already launched the second generation reforms and had received valuable inputs. "There are some problems for which we need to change the mindsets of everyone in the government, trade unions and political parties," he said.

The minister was critical of the general view that the government looked after the interests of the industrialists.

Everything that the government did was portrayed as being designed to help a few top industrialists, he noted. "How far are we prepared to carry on with this logic? Reforms are meant for the people of this country. A negative propaganda is always carried on and it has to be changed," Sinha said.

He also protested against the comments made by some political parties that the International Monetary Fund was dictating the country's economic terms and conditions.

"I do not need the IMF to tell me to balance my budget. I do not get any external advice for my budget. The general mindset is that everything is done at the behest of the multinational lending institutions. I declare here that I will fight to change this mindset. We will carry this message to every part of the country in the national interest," the finance minister said.

Sinha pointed out that political parties pursuing populist measures before the elections had failed miserably. "Economic considerations were overpowered by political considerations during the first generation reforms. However, there is no alternative to good governance. We have wrongly diagnosed that economic reforms will not be understood by the electorate," he said.

The finance minister also tried to explain the need for the second generation reforms and mentioned the government's obligations to the World Trade Organisation.

Commenting on the economic scenario, he said that this year the government would spend Rs 90,000 crore on interest, Rs 46,000 crore on defence, Rs 24,000 crore on food and fertiliser subsidy, Rs 10,000 crore on state governments, another Rs 10,000 crore on pensions and Rs 6,000 crore on the police.

"Together, we will spend Rs 186,000 crore while revenue receipts are estimated to be Rs 182,000 crore. If we want an economic growth of eight or nine or 10 per cent for the next 10 years we will need second generation reforms," Sinha said.

The minister identified five areas which will be covered under the reforms. First is the size of the government, which is likely to be reduced. Fiscal deficit came second, followed by scrapping of outdated laws. Fresh pieces of legislation on competition and corporate governance are the final two points.Regarding the opening up of the insurance sector, Sinha said Indians were eager to get long-term foreign funds for infrastructure development but are against giving a minority stake to the foreign players.

"Health of the banks needs to be improved but where will we get the funds to recapitalise? If we use the dirty word privatisation we will meet stiff resistance. Are we prepared to go ahead or live in the yesteryears?" Sinha asked.

He also touched upon the pension and provident funds. "People are used to getting a constant return on their pension funds but a good fund manager can increase this return by investing a part of it in the capital market," he said.

This mindset of getting a regular return from government securities must be changed and the people should ask for more, Sinha said.

"I have proposed that five per cent of the incremental deposit of provident funds be invested in the capital market," he said.

Sinha added that alternative employment opportunities would be generated by infrastructure, housing and infotech sectors. "Employment opportunities cannot be created only by the government or organised private sector," he said.