Bjp Still Divided On Economic Policy

A day after the release of the Bharatiya Janata Partys manifesto, senior leaders who were involved in its formulation struck a divergent note while discussing the partys economic policy separately with Business Standard.

Former finance minister Jaswant Singh, who chaired the manifesto drafting committee, suggested that the document defines the limit to which the party will go towards swadeshi. Party general secretary K N Govinda-charya, member secretary of the drafting committee, indicated the manifestos promises were the least a BJP government would do to implement the swadeshi concept.While Singh may be in charge of implementing economic policy if he becomes the next finance minister, Govindacharya is the RSS ideologue in the party and would surely influence policy.

On foreign investment, Singh said FIIs had nothing to worry about. This is not a recipe for economic isolation, that the committee never even considered locking in investments for a fixed period. Govindacharya said a lock-in was not on the cards, but we will think of alternative methods to see that the flight of foreign capital does not damage our economy.

In the same vein, he said: We have been categorical in saying no to foreign investment in the consumer goods sector. Singh sought to reassure saying, FDI is not a dirty word for us. Priorities would be laid down that may say that investment for exports would be far preferable than if it were in consumer non-durables, for example.

Singh iterated party president LK Advanis assurance that checks on foreign investment would not be retrospective, but Govindacharya said, Though it is prospective, we will not allow laissez faire on issues which may affect our national interest.

He added, We will promote local industry. For foreign companies already operating in the consumer goods sector, we will continue to evaluate performance on the basis of three parameters: capital formation, employment generation and forex earning.

By contrast, Singh said foreign companies in the country have nothing to fear and persuasion would be the BJPs watchword even with prospective investors. Asked whether the BJP would rule out 100 per cent foreign companies, Singh said: We would prefer joint ventures.

Asked how he would respond if someone wanted to invest in potato chips, he said: Well, those that have already invested in potato chips have nothing to fear. But if another foreign investor came and said, I also wish to apply in potato chips, we would persuade him that it is much better to produce machinery for potato chips.