Is it damage control? Basu meets PM on reform stance | delhi | Hindustan Times
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Is it damage control? Basu meets PM on reform stance

delhi Updated: Apr 26, 2012 22:31 IST

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Amid controversy over his remarks on the slow pace of economic reforms in the country, chief economic adviser Kaushik Basu on Thursday met Prime Minister Manmohan Singh to clarify on the issue.

Basu, who will be in office till August, is believed to have given clarifications about his comments in Washington last week on economic reforms, which had generated a debate and political back home.

Basu had said that major economic reforms in India would hit a roadblock and were unlikely to happen before the next Parliamentary elections in 2014.

Post-2014, he had said, “you would see a rush of important reforms” and after 2015 India would be one of the “fastest-growing” economies of the world.

His remarks had created a political storm with Opposition parties accusing the government of “policy paralysis”.

Basu, however, clarified later that India would see “some important” reforms in the next six months, mainly on subsidies, partial diesel decontrol and foreign direct investment (FDI) in retail.

A Cornell University professor, Basu took over as the CEA n December 2009 and his term ended in February. However, he was given an extension till August as the government was then in the process of formulating the proposals for Budget 2012-13.

The government had last week come out with an advertisement to select Basu’s successor.