Pm Assures Full Float Of Rupee

Prime Minister HD Deve Gowda yesterday affirmed his governments commitment to usher in full convertibility of the rupee as soon as possible.

Our intention is to move towards the full convertibility of the rupee as early as possible, he said while delivering the inaugural address at a two-day corporate conference hosted by the Asia Society.

In a strong reinforcement of the reforms process, Gowda emphasised that the government had resolved to strengthen and deepen the economic reform process in the next few years, with the infrastructure sector as the thrust area.

Admitting that neither the government nor the domestic industry had the wherewithal to finance the countrys infrastructure modernisation plan, he urged multinational financial institutions to play a catalytic role in attracting foreign investment into the country, especially in infrastructure.

Emphasising that his governments growth with equity theme for the ninth plan period (1997-2002), he cautioned the private investors to ensure that the benefits of the reform process reached all sections of the population.

No doubt, we need to cut through complex regulations and reduce political and government interference. We need to trim the bureaucracy and have a commercially viable public sector. We appreciate competitive forces. But more market forces and less regulations does not imply the abdication of responsibility by the state towards the poor. For reforms to be a success, we need popular support.

His statement guaranteeing the future of the reforms process was music to most foreign delegates ears, some of whom found the prime ministers speech a 100 per cent commitment to opening up the economy.

One had heard finance minister P Chidambaram reiterating commitment to reforms. But coming from the prime minister, it holds greater credibility, said a delegate from the US.

While outlining the path of Indian reforms till date, through relaxation of foreign investment, reduction of tax rates, rationalisation of duties, and measures for boosting the capital markets, Gowda said: The reform process obviously has to widen and deepen to meet challenges that remain to be tackled. However the infrastructure, industry, financial and capital market sectors have already seen several adjustments.

Is there still any doubt in the minds of the investor? he asked the corporate executives and government functionaries from different countries who are participating in the conference sponsored by the Confederation of Indian Industry and Dow Jones Inc.

In a special emphasis on infrastructure, Gowda said: ...roads, ports, telecom and power are proving to be grossly inadequate. It is high on the agenda of reforms, while stressing the need for foreign capital investment. He also reiterated the state governments commitment to the economic reforms process.

The government has resolved to strengthen the economic reform process in the next few years, with infrastructure as the thrust area.