The Hindu Business Line : Chidambaram unveils new reform plan — Six-point agenda to help economy achieve over 8 pc growth

"The difference between China and India in implementing infrastructure projects is that we are committed to implementing them efficiently. China is committed to ruthless efficiency."

SMILE SAYS IT ALL: The Finance Minister, Mr P. Chidambaram, flanked by the CII President, Mr Y. C. Deveshwar, and the Director General, Mr N. Srinivasan, at the India Economic Summit 2005 in the Capital on Sunday. — Ramesh Sharma

New Delhi , Nov. 27

THE Finance Minister, Mr P. Chidambaram, outlined on Sunday a six-point reform agenda to enable the economy to achieve and sustain annual growth rates of eight per cent and above in the coming years.

Addressing the India Economic Summit 2005, Mr Chidambaram expressed optimism that the reform agenda — two each in agriculture, industry and services — along with the required ability to complete infrastructure projects ahead of schedule, would help the economy move into the eight per cent growth trajectory.

"We are acutely conscious that there is huge infrastructure deficiency in this country. What we lack is a killer instinct. The difference between China and India in implementing infrastructure projects is that we are committed to implementing them efficiently. China is committed to ruthless efficiency," he said.

Referring to China's infrastructure agenda, he pointed out that China is building the tallest buildings in the world, longest bridge in the world and the world's largest seaport.

"Just as we have got our act together in modernising the Delhi airport and we hope to complete it by 2010, China would start building its second airport in Beijing beginning next year and complete it in 2008. This kind of ruthless efficiency and the ability to complete a project ahead of target is what is required if we have to make up for the lack of infrastructure and quickly fill the huge gap in infrastructure," he said.

The Finance Minister expressed confidence that the Government's recent initiatives to establish a special purpose vehicle (SPV) for infrastructure financing and the formulation of a scheme for viability gap funding would give a fillip to infrastructure activities.

On agriculture, Mr Chidambaram said that growth rate of 3.5-4 per cent is achievable. "We can even aspire for over 4 per cent growth in near future," he said.

The two main agenda points identified by him are the need to step up public investments in irrigation and the need to allow the corporate sector to enter into activities leading to the tilling of the land and especially activities that follow the production of agricultural goods. He, however, made it clear that the on-farm activities should continue to belong to the tiller.

"The relationship between the tiller and the land is sacred in India. I promise that relationship would never be broken. The tiller must own the land or have near ownership of the land and all on-farm activities must belong to the tiller," he said.

Mr Chidambaram said that there is a need to allow more foreign direct investment (FDI) in industry. He underscored the need for access to quality research and development for Indian firms, especially after the country has aligned its intellectual property regime to the World Trade Organisation (WTO) standards. Mr Chidambaram said that the Government should not enter into the services sector and the only two exceptions should be the health and education services. He added that services that are hitherto relatively closed should be opened up to more competition.

Later, speaking to newspersons on the sidelines of the summit, Mr Chidambaram said that the Commerce Ministry has initiated a public debate on FDI in retail and expressed the hope that the Ministry would, in the coming months, be able to arrive at a solution that satisfied all concerned.

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