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Bakht foresees industrial turnaround, hints at fresh reforms

Union Industry Minister Sikander Bakht today hinted in Bombay that the country will soon achieve a turnaround in industrial growth in spite of the present slowdown in the economy due to both internal and external factors.

Addressing the Federation of Indian Chambers of Commerce and Industry, Bakht said that the gross domestic product is expected to grow over five per cent this year supported by a growth rate of four per cent in industry, 3.5 per cent in agriculture and seven per cent in services sector.

Bakht said sectors such as transport equipment, paper, electricity generation, cement, leather and basic chemicals have shown positive growth in recent months in spite of general recessionary trends.

On the future policy measures, he said that the Centre would continue its thrust on reduction of fiscal deficit through better targeting of subsidies, widening tax base and better tax compliance, accelerated public sector disinvestment and high industrial growth.

Some of the likely reforms in the near future could include enlargement of automatic approval to foreign investment, simplification of licensing procedures, review of the Exchange Controls Act and industrial legislation and reforms in labour laws.

Bakht, who expressed his concern over the political turmoil in the country, said that his government had to pave its own path to globalisation based on concrete national realities and priorities and swadeshi was just that. While it prepares India to integrate itself with the new world economic order, it also aims at creating a level playing field for its domestic industry.

The new economic policy was an outcome of a well considered long-term strategy to gain its rightful place in the new world economic order. The strategy of globalisation with a human face has gained political consensus as also public acceptance.

He felt that India's strengths were based on strong macro economic fundamentals, fiscal prudence and monetary discipline, deregulation of industry, cautious approach to capital account convertibility and firm control on external debt exposure.

In the next millenium, he said, countries with a technological edge and access to information would dominate the economic arena and India is making a headway on both fronts. Today, we are facing the litmus test of globalisation and these are trying times for both government and industry, he added.

UNI

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