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As the United Progressive Alliance gets ready to complete its second year in office, the government's performance and the economic policies adopted by it -- especially its ambitious plans to eradicate poverty -- have come under the scanner. In an interview with The Financial Times, Prime Minister Manmohan Singh said India's performance under the United Progressive Alliance government has 'not deteriorated' and that, in fact, it has been good. Elaborating, he told the financial daily that India's gross domestic product growth was set to be in the region of 7.5 to 8 per cent for a third consecutive year, its public finances were improving, and inflation too had dropped below 4 per cent. He went on to add that a buoyant 'spirits of entrepreneurs' has resulted in investment levels touching 31 per cent of the country's GDP -- highest since the start of the era of economic liberalisation. Talking about the ambitious National Rural Employment Guarantee Scheme that guarantees a minimum of 100 days of paid employment per household in the poorest parts of the country, Dr Singh said, the plan -- seen to cover the whole country in the next four to five years -- would be a mother of all social security programmes ever introduced in India. The prime minister was confident that in the next few years India's electorate will be convinced that the UPA government was 'a caring government that believes in growth with a human face.' The government, he said, plans to initiate a law that would force the country's private sector to reserve jobs for the 'backward classes' -- a proposal that has been vigorously opposed by India Inc and the country's various industry bodies. Reservation in higher educational institutions has already divided the Congress party, with Union Science and Technology Minister Kapil Sibal challenging such a move. The Financial Times said Dr Singh has kept himself away from the controversy.
The newspaper said government officials feel the prime minister would 'oppose any further attempt to extend caste quotas to the private sector.'
While this may be heartening news for Indian industry, it would be interesting to see how the government successfully balances its economic policies with a 'human face' and the need to woo the vote bank, the newspaper said.