After months of inaction, India is starting to make economic reforms again, despite the widespread protests from both opposition parties and retailers. Perhaps, the government realises it has no option given the prolonged severe economic slowdown in India.
BBC: “India’s finance minister has promised more reforms after it opened up its retail sector to foreign supermarket chains and cut diesel subsidies.
P Chidambaram also told the BBC that it was unfair to single India out for corruption, but said more was being done to tackle the problem.
Mr Chidambaram is one of the most important figures in the government.
The government is facing criticism of the reforms it announced last month to try to boost the slowing economy.
Opponents say the measures, which include opening up India’s massive retail sector to competition from foreign supermarkets, will hurt the poor.
Last month, the government also announced a 14% rise in the price of diesel, which is heavily subsidised in India, and reduced the subsidy on cooking gas cylinders.
But some economists and large investors say the government is not going far enough, and warn that India still faces the threat of a credit rating downgrade.
In a BBC interview on Wednesday, Mr Chidambaram promised more reforms to come.
He also said that the government was doing more about accusations of corruption.
Asked if he had ever accepted a bribe himself, the minister denied it.
But corruption remains one of the issues troubling many would-be investors, both Indian and foreign.
And after months of apparent paralysis, with the government unable to get any major legislation passed, it still has a lot to prove.
via BBC News – India minister Chidambaram promises more reforms.
Related articles
- * India opens retail to global supermarkets (chindia-alert.org)
- * India strike over supermarket reforms (chindia-alert.org)
- Key party quits India government (bbc.co.uk)
- More reforms in the pipeline (todayonline.com)
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