The Hindu Business Line : A good year

EVEN BY STANDARDS of coalition politics, surviving one year in office ought not to be seen as a significant milestone. But the circumstances under which the Manmohan Singh Government passed this mark have by no means been ordinary. It had at the start looked an unstable arrangement if only for the fact that the Congress, the dominant party in the coalition, had until then shown a marked disinclination to share power with smaller, and largely regional, parties. As the only party with a pan-Indian presence, it has believed itself to be the sole claimant to the seat of power in Delhi. To compound matters, Ms Sonia Gandhi, who would have been the logical choice to lead a Congress-led coalition, declined to do so, bringing in instead Dr Manmohan Singh, even if he had not exactly cut his teeth in the rough and tumble of the characteristic mass-agitation-based politics. In the event, there was an understandable sense of disquiet about the Government staying together as an effective ruling arrangement. But a year down the road it is fair to say that this mood of nervousness has given way to cautious optimism about its ability to last the full term. Nothing illustrates this better than the stock market, which after recording the second biggest loss in its history immediately after this Government assumed office, bounced back to post a 45 per cent gain.

But market perceptions apart, even its worst critics would not accuse the Manmohan Singh Government of committing any blunder that has impeded economic growth. On the contrary, it has reinforced the growth impulses in the economy, reflected in the healthy rate of output growth of seven per cent in the current year, as the Reserve Bank of India reckons. A remarkable achievement, coming as it does on top of a similar growth rate in 2004-05. The Government can be justifiably proud of its record on inflation management too, with prices kept under check despite the sharp rise in oil prices thanks to its stranglehold on the pricing decisions of the public sector oil companies. The bullish business confidence should translate into buoyant conditions for fresh investments in the days to come.

If there is any disappointment at all, it is in the fact that this Government has not been able to make any serious dent in the problems affecting key infrastructure sectors such as energy, ports, railways and surface transport. The fiscal situation both at the Centre and the States continues to be precarious and their borrowing programme would sooner or later crowd out private investments. But, then, these problems have defied solutions even in the past when the Governments have had more decisive popular mandates. Despite a year in office Dr Manmohan Singh's reputation for probity and fair conduct continues to remain as unsullied as ever though the same cannot be said of some of his ministerial colleagues. Historically, the Indian public has adopted liberal standards to judge politicians in whom it reposes faith. But the Government would do well to remember that it would be a folly to continue to depend on such benevolence if it wants to improve the odds of securing a renewed mandate.

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