The Hindu Business Line : US sees 'pause' in Indian reforms process

The US, on Wednesday, said that there was a "pause" in India's economic reforms process and that this loss of momentum could have serious economic costs attached to it. However, the Defence Minister, Mr Pranab Muherjee, said that the economic reforms were a continuous process.

Speaking at the Indo-US Economic Summit here, the US Ambassador, Mr David C. Mulford, said, "There are signs of a pause in the reforms process in recent months."

He said privatisations have stopped and political reality suggests that reforms of other key sectors and policies of central interest to investors will take longer than envisioned. He further cautioned that there could be "serious economic costs to any loss of momentum on the reform front."

However, Mr Mukherjee said, "The reforms were no stop-and-go but a continuous process."

He added, "There could be minor hitches in the process of reforms but as you know only too well, democracy is about checks and balances."

"Decisions can be taken only after debate and due consideration. Hasty decision making can have its own negative repercussions," Mr Mukherjee said.

On the civilian nuclear deal, Mr Mulford said, "We hope the Senate will vote this month. If there is Senate action, we believe there will gain be a large majority."

He added, "The goal posts are not being moved, it is a civil nuclear agreement and when finally implemented, will mark a new level of trust and cooperation in our partnership."