Forewarning: Reform or ‘miss the bus’, Indian opp told

Parliament stalled again by political rows, economic reforms hindered

NEW DELHI: India’s finance minister urged opposition parties to cooperate in passage of economic reform legislation, warning otherwise Asia’s third-largest economy “will miss the bus” again.

The traditionally fractious parliament has been stalled yet again by political rows that have hindered efforts by the new right-wing government to enact reforms and revive the stuttering economy.

Stormy scenes in parliament under the previous left-leaning Congress government also hindered economic reform efforts.

“The clear choice before us is – either we reform or we miss the bus once again,” Finance Minister Arun Jaitley told a top-level corporate audience in a speech in New Delhi.

The minister added there was a need for “a shared national vision” to get India back to nine-to-10% annual growth levels it enjoyed until a few years ago to lift hundreds of millions out of poverty.

India has been stuck in the longest spell of below-five-percent growth in a quarter-century, hit by high interest rates, an investment slowdown and flagging consumer confidence.

Economic growth in the last financial year to March 2014 was 4.7% after falling to 4.5% the previous year.

This year, the government hopes growth will accelerate to 5.5% and next year “we have to first cross the six-percent-mark”, Jaitley said.

Growth downturns and uncertain investment landscapes in other parts of the world mean “investors are looking to come to India”, Jaitley said.

But to capture this investment opportunity, India needs to slash red tape, liberalise the economy, speed up decision-making and become a more business-friendly destination, analysts say.

“For the next decade we can have a full reform agenda on our table” if all sides get on board, Jaitley said.

Published in The Express Tribune, December 21^st, 2014.

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