Prime Minister Manmohan Singh assured a group of 23 high-profile corporate chiefs that the reform process was firmly on course. At a one-hour breakfast meeting at St James Court Crown Plaza hotel, he said a new mindset was in operation to keep the reforms on course. “India is working on a a new model to integrate into independent global economy,” he said.
There was a positive atmosphere during the interaction between the PM and the CEOs where wide-ranging issues from Pakistan, fiscal policies and privatisation were discussed. Those present included Cairn Energy’s Bill Gammell, P&O’s Lord Sterling of Plaistow, Prudential’s David Clementi, Vodafone’s Arun Sarin, Morgan Stanley’s Simon Robe and The Economist’s editor-in-chief Bill Emmott.
The prime minister said the changes in the economic policies in 1991 were a tribute to Indian genius and pointed out that they have withstood the test of time and remained on course through three governments. He reiterated that the country's economy was more open today and it welcomed foreign investment and cooperation in various sectors.
He touched briefly upon the changes he saw in the UK since he was here 50 years ago. Britain has become multiethnic and multilingual. India, he told the CEOs, is a cohesive nation state which celebrates its diversity.
He explained to them India's economic parameters while admitting there were still some problems which could not be skirted but need to be managed. He specially mentioned problems in the infrastructure sector and added he would welcome investments to overcome them.
{{/usCountry}}He explained to them India's economic parameters while admitting there were still some problems which could not be skirted but need to be managed. He specially mentioned problems in the infrastructure sector and added he would welcome investments to overcome them.
{{/usCountry}}Responding to a question about India’s perception of the role of the WTO, Singh said the rule-based global trade regime was in the interest of India and other developing countries. It would avoid the might is right perception. He told the CEOs that there were very healthy trade relations with China. On the question of Indo-Pakistani dialogue, the PM said there was movement forward and the set timetable was being adhered to.
Several questions were raised about the political debate on privatisation. Singh said: “We do not accept privatisation as an ideology, there is no ideological view. We take a pragmatic view. We would pursue privatisation where the national purpose may be served.”
The PM also clarified that in case of profit-making PSUs working in a competitive environment “there was no earth-shaking reason to pursue privatisation”. He said the plan for privatisation of railways has not engaged policymakers’ attention so far. But in future it could emerge.