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- Oct 22, 1999 - BJP led government speeds up reforms
BJP led government speeds up reforms
The new government, led by the Bhartiya Janata Party, has stepped on the gas as far as economic reforms are concerned. The government, in the last two days, has cleared the Insurance bill, the new telecom deal, the Foreign Exchange Management Act, Prevention of Money Laundering Bill and the amendment to the Securities and Contracts Regulation Act. Although the bills still have to be ratified by the Parliament, the passage by the Cabinet is nonetheless commendable.
The keenness shown by the government in the passage of these bills is sure to reflect positively on the country. This will help in raising low cost funds in international markets to fund the large amount of planned expenditure on infrastructure. Moreover, private sector companies will too benefit from improved outlook of the Indian economy. In short, foreign institutional and direct investment could surge if the government were to keep up the pace of reforms and ensure their proper implementation.
The new government's determination and initiative to pursue economic reforms is undoubtedly unparalleled by any former government. However, only the extent of implementation of the new reform measures will judge its performance.
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