Indian PM outlines plan for inclusive growth

Under the title « Government keen to cut red tape », a leading Indian newspaper partnered with the Wall Street Journal reports that PM Singh outlined his policy to preserve growth, avoid that “the fruits of an open economy (will) be increasingly captured by fewer people, and attract FDI. The paper comments: “The government has, in recent months, come under attack for keeping key policy reforms relating to foreign investment in organized retail and insurance in limbo, and failing to make headway in implementing changes in taxation. Rating agencies Standard and Poor’s and Fitch have downgraded the outlook on India’s sovereign rating, citing slowing economic growth, high deficits and policy inaction.”

The PM now wants to renew the anti-red tape drive:  “We will…work towards improving the response time of government to business proposals, cut down infructuous procedures, and make India a more business-friendly place,” he said. “We want the world to know that India treats everyone fairly and reasonably, and there will be no arbitrariness in tax matters.”

It will however take more than political declarations to sort out the Indian bureaucracy, as pointed out by a Forbes India article today.