The head of India's largest business house has moved to reassure foreign investors that the new Indian government would be able to pursue reforms despite its reliance on communists for support.

Citing the successful relationship between the foreign businesses community and the communist government in China, Mukesh Ambani, Chairman of the Reliance Group, said the communists in India could help deliver even better results.

"International financial markets and analysts need not panic because they have dealt with the Chinese communists successfully," he said.

"I can assure you that the communists in India will put them to shame," Ambani said late Thursday after receiving a leadership award from the US-based Asia Society, presented to him by Senator Hillary Clinton.

Reliance, founded 46 years ago by rags-to-riches entrepreneur Dhirubhai Ambani to trade polyester yarn, has grown to become India's largest private conglomerate by sales.

The corporate behemoth, which accounts for 3.5 per cent of India's gross domestic product, is now a key player in oil and gas exploration, telecommunications and petrol retail outlets.

Ambani said he expected continuation of the policy by the Congress-led government of incoming Prime Minister Manmohan Singh, who had laid the foundation for economic reforms when he was finance minister in the last decade.

Ambani, however, believed Singh would make 'adjustments in the sequence, pace and emphasis' of reforms to reassure the poor.

"A reform that fails to address the deprivation of the underprivileged cannot last for long," he said.

Congress swept off the National Democratic Alliance from power by highlighting the vast disparities between the India of hi-tech industry and glitzy malls championed by the outgoing government and the bitter reality for the rural majority.

"India experienced an electoral hurricane but there is a smooth transition from one coalition to another, reflecting the strength of India's democracy," Ambani said.

He called for a 'grand alliance' between the world's largest democracy India and the oldest democracy the United States to 'together deal with the two biggest challenges facing humanity -- concerns for safety and security and desire for prosperity and well being.'

Ambani said opportunities for cooperation between the two giants should extend from information technology and outsourcing of services at present to healthcare, university education and science and technological research.

"The US can be India's partner in giving a better life to our have-nots while India can be America's partner in meeting your need for talent," he said.

Hillary Clinton said the new Indian government faced various challenges, including alleviating poverty, checking a growing HIV/AIDS epidemic and providing education opportunities to a larger section of the population.

She said the epidemic could become the biggest obstacle to development and progress in India, which has at least 4.58 million HIV-positive people, more than any country except South Africa.

-- AFP