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The Montek Singh Ahluwalia Chat

What more in your opinion needs to be done by your ministry to improve the outlook for infrastructure in India? Do you think an arbitration process that is beyond controversy could be one of the factors that attracts foreign investors?

WHen you travel to London or Washington as a representative of India do you feel that India's financial prospects excite the people you meet. Do you feel that you get an adequate reception??

Pls tell us what you think of the Economist's recent sp feature on India?

I hope I am not late, Mr Secretary. Could you outline for me the agenda behind the reforms? In an earlier response you claimed that poverty in India has gone down. Why you civil servants use statistics like a drunk uses a lamp post is beyond me. But the fact is that anyone who has been to your country knows what poverty there is in your country? I am amazed that enough attention has not been paid to a problem that could lead to economic unrest and social chaos.

MONTEKJEE PLS ANSWER: All the foreigners who land up in India massage our egos and scratch our backs about how great India is doing and how India is the place to be. Honestly speaking how much of this is correct? On the other hand you hear that investment in the country of Malaysia outstrips us by miles and we are major losers? What is your opinion on this?

Ryan: We are very impressed with what is going on in Shanghai. As I said to someone else on this chat show China has had an earlier start. For our part we too find that things are beginnig to happen. And I have no doubt that more will happen in the years ahead. In this budget, the government has announced a major review of the urban land ceiling act which held back urban construction. Hopefully, these constraints will be removed in the near future. Shail: There is every hope that private sector initiatives will contribute to the development of basic infrastructure. We already have private power plants in various stages of operation. You hear about the bad news when an ENRON gets stalled. But there are private sector plants that has started producing pwer in the last year. TElecommunications is another area where a private sector is in operation in cellular telephones in the metros. And similar services are about to start in many states. So dont give up hope. The government has announced has announced a new policy on private sector investment in roads.

WHen you travel to London or Washington as a representative of India do you feel that India's financial prospects excite the people you meet. Do you feel that you get an adequate reception??

Could you as an economist and finance secretary let us know where we will be in 2000 -- economy-wise?

Sir, do you have an aversion to answering individuals who make an honest living on Wall Street? I have asked three questions, none of which have been replied to?

How come nothing is being to done to ensure that what multinationals supply us locally is compatible with the very same product they sell abroad. I mean there are miles of difference between a London cadbury bar of chocolate and an India one or a Procter and Gamble detergent sold in New York CIty and one found on a shop shelf in Mubai. I know we want to have a free economy but in the initial stages shd there not be some way of assuring quality control?? I would be very interested in hearing your ans to this becaause I think the average Indian consumer often feels duped.

MONTEKJEE PLS ANSWER: All the foreigners who land up in India massage our egos and scratch our backs about how great India is doing and how India is the place to be. Honestly speaking how much of this is correct? On the other hand you hear that investment in the country of Malaysia outstrips us by miles and we are major losers? What is your opinion on this?

WHen you travel to London or Washington as a representative of India do you feel that India's financial prospects excite the people you meet. Do you feel that you get an adequate reception??

Thank you, for responding to my question., But it is not the head start factor alone that has taken China ahead. Despite the corruption, despite the lack of a proper legal system, despite the absence of English, the Chinese have got ahead becauise there is some certainty about their reform process. Not likke India where nothing moved -- in the momentum sense -- since the autumn of 1994 when Mr Rao lost all those elections, until the week before Davos. How do you ensure a broad political consensus about the reforms?

Anthony: I think your concern about investor fears are a little exaggerated. You mentioned Pepsi fearing being thrown out. Why you dont ask Pepsi whether they really have this fear. My impression is that they are expanding rapidly and looking forward to a prosperous future in India. the only thing they are worried about is Coke which is as it should be. Indian: It is true that there is competition among the different states for investment. But this is a good thing. It will make states think harder about how to attract investor which means how to create conditions favourable for investment. Some states may do better than others to begin with. But others will catch up very soon. We will do better all around with this competitive spirit than without.

Sir:Infrastructure as a basic requirement to jumpstart the economy, let us give you the worm's eye view: Ports: Nil, so far. Power : One in A.P. and that's it. Roads : It will never work, and if anybody quotes Indore-Dewas, please check with Mr Vikram Lal as to who/how is paying for it... Simple soultion : Make the Rakesh Mohan Report not just required reading (It is, believe you me, out of stock at the official bookshops and pirated copies sell for Rs 1000-2000 !!!) and just let us develop PORTS. Without PORTS, what good is everything else?

In your reply to Ryan you mentioned that you are impressed with SHanghai and that China had an earlier start. But surely we are today at a stage where Chiuna was five years ago, time wise. But we are not there propserity or developmentwise? And nor is foreign interest at the right level?? I wopuld be very interesdted in hearing from you on this score and the the other question I asked. WIll repeat the other above.

Thank you for answering my question. I am not sure though whether the incidents of 1977 (Coke/IBM) will be repeated. There is this streak of xenophobia about you Indians which overcomes all economic reasoning! I was disappointed that there was nothing to promote the power industry in your Budget. I would also like to know how long before the insurance sector is liberated from government control?

Oh yes, I forgot, cellphones as a telcom infratsructure story... Come on Sir, how can you? What are the numbers, and how many of these cellphones are with undertrials, pimps, pushers etcetc....infrastructre for THEM???

I hope I am not late, Mr Secretary. Could you outline for me the agenda behind the reforms? In an earlier response you claimed that poverty in India has gone down. Why you civil servants use statistics like a drunk uses a lamp post is beyond me. But the fact is that anyone who has been to your country knows what poverty there is in your country? I am amazed that enough attention has not been paid to a problem that could lead to economic unrest and social chaos.

Alice: The agenda behind the reforms is to unleash the enormous enterprenurial energies which exists in India which could easily enable India to grow at 7-8 percent per year. It is this kind of growth which generates employment and reduces poverty. As you say it is pretty obvious that there is lot of poverty in India. What I said in an earlier answer was that there is less now then there was ten or twenty years ago. But, I agree that there is too much even today. And we have to do something about it.

Mr AHluwalia: WHat is your opnion of the basis for founding the Infrastructure Finance and Development Corporation. Is it a sound idea. Won't its purpose overlap with that of the ILFS? How successful do you think it will be?? Just tell us what you think of the whole idea.Would you put your money down on such an idea?

The more things change in your country the more they remain the same. What impression do you convey to the world when one ministry pases a project and another vetoes it. No pathbreaking Budget can erase the sour taste left in one's mouth by Enron or by the Tata-SIA affair.

Pls tell us what you think of the Economist's recent sp feature on India?

In your reply to Ryan you mentioned that you are impressed with SHanghai and that China had an earlier start. But surely we are today at a stage where China was five years ago, time wise. But we are not there propserity or developmentwise? And nor is foreign interest at the right level?? I wopuld be very interesdted in hearing from you on this score and the the other question I asked. WIll repeat the other above.

Thank you, Mr Secretary. I remember there was something called the National Renewal Fund to train workers who were laid off. I note that no allocations have been made for the NRF in this Budget. Does that mean that the scheme is scrapped? How do you intend to protect the interest of workers kin a country where owners are so capricious?

WHen you travel to London or Washington as a representative of India do you feel that India's financial prospects excite the people you meet. Do you feel that you get an adequate reception??

EVERYONE: I am sorry, I have to leave now. Many apologies to those of you whose questions I could not answer. Especially Mike Wallace, whose questions got lost. I enjoyed talking to you all. I hope you will continue taking an interest in what is going on in India. Good Bye for now.

How come nothing is being to done to ensure that what multinationals supply us locally is compatible with the very same product they sell abroad. I mean there are miles of difference between a London cadbury bar of chocolate and an India one or a Procter and Gamble detergent sold in New York CIty and one found on a shop shelf in Mubai. I know we want to have a free economy but in the initial stages shd there not be some way of assuring quality control?? I would be very interested in hearing your ans to this becaause I think the average Indian consumer often feels duped.

And, by the way, all the fine people quoting China as an example : It is a bit like quoting GT Road to represent Haryana in toto...they are quoting India as an example there from what I hear from other worms eye views there, too...Matter of fact it still takes 3 weeks to drive from Peking to Lhasa, if at all, and the only ports working well there belong to non-Chinese companies, full ships with cargo disappear there...point is not visavis China, point is simply visavis India and lets sort that out first??

WOULD BE VERY GRATEFUL TO HAVE YOUR OPINION: Mr AHluwalia: WHat is your opinion of the basis for founding the Infrastructure Finance and Development Corporation. Is it a sound idea. Won't its purpose overlap with that of the ILFS? How successful do you think it will be?? Just tell us what you think of the whole idea.Would you put your money down on such an idea?

Mr.Ahluwalia: Given growth is the best cure for poverty - China regularly hits 10% growth or better. What policy measures do you think are critical to achieving that kind of growth in India?

There is a lot of emphasis in interviews that I have access to which underscores the will to keep pace with the East Asian Tigers. Is that where the inspitaion for the Budget comes from?

EVERYONE: I am sorry, I have to leave now. Many apologies to those of you whose questions I could not answer. Especially Mike Wallace, whose questions got lost. I enjoyed talking to you all. I hope you will continue taking an interest in what is going on in India. Good Bye for now.

gone already? Only 0030 hrs here...

Photographs: Atul Chowdhary