The Hindu : National : 'NDA committed to making India an economic superpower'

Online edition of India's National Newspaper
Friday, Apr 09, 2004

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National

'NDA committed to making India an economic superpower'

By Our Special Correspondent

NEW DELHI, APRIL 8. The National Democratic Alliance has promised to increase the foreign investment limit in the insurance business and to permit 26 per cent foreign investment in retail trade if voted back to power.

The two initiatives form part of the exhaustive economic blueprint, outlining the NDA policies and programmes in practically all areas of economic management, released here today.

Setting out the goal of eight to 10 per cent growth on a sustainable basis over the next five years with eradication of poverty by 2015, the manifesto said the NDA was committed to making India an economic superpower through a seven-pronged strategy. The strategy envisaged making India the food factory of the world; a global manufacturing hub; a service provider to the world; a centre of knowledge economy and a global destination for tourism, healthcare and higher education.

The manifesto provides detailed programmes that would be implemented in agriculture, rural development, infrastructure, industry and economic reforms. A separate strategy has been outlined for employment generation, where the commitment to create one crore additional jobs and self-employment opportunities has been reaffirmed. It includes sustaining a high economic growth of 8-10 per cent, raising the employment-elasticity of the economy and enlarging the scope of Government schemes that create employment.

On continuing with the economic reforms initiative, the NDA manifesto said that foreign direct investment limit in insurance would be revisited to further widen India's insurance sector and strengthen its global linkages. The tax to gross domestic product ratio would be improved through further widening and deepening of the tax base while tariffs would be rationalised and simplified by removing all exemptions within two years.

One contentious issue addressed in the manifesto relates to foreign investment in retail trade. Stating that organised retail trade on the international pattern would be promoted, the manifesto proposes foreign investment up to 26 per cent in retailing. Also, internal trade barriers that hamper growth would be removed.

To capture the developments and opportunities in the global trade environment, the NDA proposed the creation of a separate Ministry for International Trade. Besides, special economic zones would be promoted as vehicles for overall growth while multi-commodity exchanges would be encouraged to secure for India leading positions in global trade in agricultural commodities, metals and a wide range of other commodities.

On disinvestment of public sector undertakings, the NDA said the process would continue, primarily to enhance and realise the hidden wealth of the PSUs.

Reaffirming its commitment to make India the centre of knowledge economy, the NDA promised full support to the information technology industry with adequate fiscal and policy support.

It also promised to set up an independent food regulatory authority within six months which would be responsible for setting and enforcing standards for all food products. A unified food law for faster development of food-processing industries would be enacted within six months, the manifesto said.

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