Union minister of state for commerce B B Ramaiah has said that the recent split in the ruling Janata Dal will not effect the on-going economic reforms and opening-up policies of the I K Gujral government.
The reforms launched in 1991 are being implemented on a much faster pace during the last one year or so despite problems in the United Front government, the minister said. This shows that economic reforms in India are irreversible and foreign investors and the Indian business community need not worry about the stability and continuity of the government, Ramaiah said.
He said that the countrys bold reform policies have received broad support within and outside India and that his ministry was doing its best to attract investment to help build up the vital infrastructure for speedy development.
The commerce minister said that even though some political parties had some differences of opinion on the modalities of implementing the reforms, no one was opposing it in an outright fashion.
He said several states have been making efforts to attract foreign investments and have revised rules and regulations in order to provide single window facility to foreign companies and investors.
Ramaiah, who addressed the India-China joint business council meeting here on Monday said the economy has responded well to the economic restructuring programme.
Even in the face of slowdown in industry and exports, gross domestic product is pegged at seven per cent.
Fiscal deficit has been brought down to five per cent of the GDP in 1996-97 and the annual rate of inflation has been brought down below six per cent.
Ramaiah said the economy has achieved a greater degree of openness with its trade-GDP ratio improving from 14 per cent in 1990-91 to 21 per cent in 1995-96.
He said a recent World Trade Organisation (WTO) study has ranked India among the fastest-growing economies.
With the `positive attitudes of the government, the inflow of foreign investment is rising steadily, he said, adding that the countrys foreign exchange reserves now stood at a comfortable level of $28 billion.
All these indicate the foreign investors have faith in the Indian political system and are willing to take part in the huge task of national reconstruction, Ramaiah said.
He said the government is making every effort to make the policy framework more investor-friendly, transparent and dynamic.