CHENNAI, June 15: Union Finance Minister Palaniappan Chidambaram has expressed concern over a section of Indian industry ``falling prey to forces trying to derail economic reforms.''

``These forces have now gained space, which they did not have 12 months ago, in the name of protectionism, self-sufficiency and a distorted interpretation of swadeshi,'' Chidambaram said at one of the meetings he addressed during his one-day whistle-stop tour of the city on Saturday.

Urging captains of industry to rise above protectionist temptations, the minister said ``this attempt to roll back reforms will not help India. The country cannot succeed by undoing reforms, but by accelerating the pace.''

He asserted the entire global community, save North Korea and Cuba, had accepted the principles of open economy, free flow of technology and capital and reward for entrepreneurship and efficiency as the path to progress.

``The two countries which have not accepted this principle are facing the grim spectre of starvation,'' Chidambaram said observing that thousands have perhaps died of hunger in North Korea.

After six years of reforms, the country could not afford to go back and industry must foil the bid by anti-reform forces, Chidambaram added. The last fiscal year, which witnessed a change of government, the phenomenon of a short-lived government followed by a tentative coalition, was a ``daunting year'' for the economy, Chidambaram said.

However, the Finance Minister maintained that ``all the difficulties faced in the last year are behind us and we can look forward to 1997-98 with confidence and hope. I am sure the industry, and the economy, will do much better during this year.''

In 1996-97, even as the political class was trying to find its feet, consumer demand was sluggish due to decline in agricultural production in the previous year.

The pursuit of a single point programme of containing inflation by the ``government of the day'' in 1995-96 had resulted in high interest rates and tight liquidity position in the following year.

Chidambaram said there was also a sense of fear and suspicion among the people on the prospects of economic growth, while ``there was the usual quota of scams and scandals too.''

Banks were not willing to lend, bureaucracy was weary of decisions and the political situation was uncertain which made things miserable for the economy.

Chidambaram said his current mission was to ``spread the message of hope and confidence''.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.