This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/world-asia-india-19814874
The article has changed 5 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
India minister Chidambaram promises more reforms | India minister Chidambaram promises more reforms |
(35 minutes later) | |
By Andrew North BBC News, Delhi | By Andrew North BBC News, Delhi |
India's finance minister has promised more reforms after it opened up its retail sector to foreign supermarket chains and cut diesel subsidies. | India's finance minister has promised more reforms after it opened up its retail sector to foreign supermarket chains and cut diesel subsidies. |
P Chidambaram also told the BBC that it was unfair to single India out for corruption, but said more was being done to tackle the problem. | P Chidambaram also told the BBC that it was unfair to single India out for corruption, but said more was being done to tackle the problem. |
Mr Chidambaram is one of the most important figures in the government. | Mr Chidambaram is one of the most important figures in the government. |
The government is facing criticism of the reforms it announced last month to try to boost the slowing economy. | The government is facing criticism of the reforms it announced last month to try to boost the slowing economy. |
Opponents say the measures, which include opening up India's massive retail sector to competition from foreign supermarkets, will hurt the poor. | Opponents say the measures, which include opening up India's massive retail sector to competition from foreign supermarkets, will hurt the poor. |
Last month, the government also announced a 14% rise in the price of diesel, which is heavily subsidised in India, and reduced the subsidy on cooking gas cylinders. | Last month, the government also announced a 14% rise in the price of diesel, which is heavily subsidised in India, and reduced the subsidy on cooking gas cylinders. |
But some economists and large investors say the government is not going far enough, and warn that India still faces the threat of a credit rating downgrade. | But some economists and large investors say the government is not going far enough, and warn that India still faces the threat of a credit rating downgrade. |
In a BBC interview on Wednesday, Mr Chidambaram promised more reforms in banking, insurance and other sectors. | In a BBC interview on Wednesday, Mr Chidambaram promised more reforms in banking, insurance and other sectors. |
"It will be clear we are on the reform path," he said. | "It will be clear we are on the reform path," he said. |
Sounding upbeat about India's prospects, the finance minister said the country would "return to 9% growth" once certain "fundamental constraints are addressed". | Sounding upbeat about India's prospects, the finance minister said the country would "return to 9% growth" once certain "fundamental constraints are addressed". |
Latest forecasts from economists at the Asian Development Bank are less optimistic, however, suggesting that India's growth will slow to 5.6% this year, before picking up to 6.7% in 2012. | |
'Unfair' | 'Unfair' |
A series of corruption scandals have dented the government's image at home and abroad - with both Indian and foreign investors citing corruption as a major reason for their reluctance to invest. | A series of corruption scandals have dented the government's image at home and abroad - with both Indian and foreign investors citing corruption as a major reason for their reluctance to invest. |
Mr Chidambaram said it was unfair to single out India but said the government was "putting in place systems and procedures to deny people the opportunity to be corrupt". | Mr Chidambaram said it was unfair to single out India but said the government was "putting in place systems and procedures to deny people the opportunity to be corrupt". |
"We are taking away the discretion of ministers," he said. | "We are taking away the discretion of ministers," he said. |
The finance minister denied receiving a bribe himself and said claims that most ministers took such inducements were "utter rubbish". | The finance minister denied receiving a bribe himself and said claims that most ministers took such inducements were "utter rubbish". |
Most Indians, he said, would judge the government's record "when they go to vote". | Most Indians, he said, would judge the government's record "when they go to vote". |
It was a financial crisis in 1991 that opened the way for then finance minister Manmohan Singh to introduce the reforms widely credited with opening up India's economy. | It was a financial crisis in 1991 that opened the way for then finance minister Manmohan Singh to introduce the reforms widely credited with opening up India's economy. |
With India's budget deficit rising, critics say it is the threat of another crisis that has encouraged the government to bring in the current changes. | With India's budget deficit rising, critics say it is the threat of another crisis that has encouraged the government to bring in the current changes. |
Mr Chidambaram admitted that India was facing some problems, but said its "economic situation is better than many other countries". | Mr Chidambaram admitted that India was facing some problems, but said its "economic situation is better than many other countries". |
The government now has a year to prove itself before a general election which is due to take place in early 2014. | The government now has a year to prove itself before a general election which is due to take place in early 2014. |