The Hindu Business Line : Indian voters favour more reforms: IMF official

A TOP official of the International Monetary Fund (IMF) is of the view that the outcome of India's recent parliamentary elections reflected a "message" in favour of "more reforms" instead of being a mandate against the "spread of markets" and the "process" itself.

Responding to questions after delivering a public lecture, the IMF Economic Counsellor, Dr Raghuram Rajan, said here that "the vast majority of voters ... wanted more of it (the reform process)".

The lecture was organised by the Monetary Authority of Singapore and the Economic Society of Singapore.

Outlining his 'take' on the latest political message from the Indian voters, Dr Rajan said: "They wanted it faster, because their aspiration levels had been increased. ... The 'India Shining' campaign ... had actually backfired, because it told the world that the people have started asking, 'If India is shining, what am I doing? Why am I not shining?' The difference in expectations and reality, essentially, may have backfired on the BJP. That, at least, is one message of the Indian election. So, I would believe, they want more (reform), they want it to percolate down to them in a greater way. .... Certainly, the current Government (in India) seems to have taken same kind of message and proceeded with reforms while ensuring a broader base of those reforms".

Drawing attention to the attitude of the Indian public sector workers and the poor to the issues at stake in this reform process, Dr Rajan emphasised that their feelings in regard to the inevitable challenges of "competition" could be addressed through the provision of greater "access" to education, healthcare and the like.

Answering questions about India in the context of his presentation on "creating constituencies for growth" across the world, Dr Rajan said: "You have a whole set of new entrepreneurs who made their money in the New Economy. They have been taking advantage of the new infrastructure.

"Infosys is the software firm in India which is working very hard, fighting for a broader and more deeper educational system, because it draws its people from that system and it wants something which is much stronger. So, you hear those voices added to the voices of reform. And, to the extent those voices also have money power behind them, I think it balances out behind the old school which still wants protection."