India Shining or stumbling and fading out

From the Financial Times, Monday, July 10, 2006

page 3: "India accused of losing nerve over its reform plans" by Jo Johnson in New Delhi

"Indian business leaders have lamented the government's loss of nerve over plans to sell small stakes in publicly owned companies, seen as the latest sign of backslidding in a reform programme that has lost momentum and credibility.

The confederation of Indian Industry expressed deep concern at a statement from the government on Thursday announcing that Manmohan Singh, prime minister, had decided to keep all disinvestment decisions and proposals on hold pending further review."

page 14 (editorial):

"India's rude awakening" subbreastle: "The privatization debacle is a serious economic setback"

"The result is likely to be a slowdown in growth, at least in the near term, for which New Delhi appears ill-prepared. A weaker economy threatens to reverse the recent progress made innarrowing its large revenue deficit and the freze on buttet sales will reduce yet further the meagre budgetary resources available for desperately needed infrastructure investment. After last week's setback, it will be even harder politically to open such projects to private capital."

"...the economy looks like it is heading into rougher water, with a shaky hand at the helm."

"Mr Singh deserves some sympathy for his problems, which are by no means all of his making. Yet his government has undeniably squandered opportunities for reform. Instead of complacently trumpeting India's econmoic acheivements, for which it can take little credit, it needs to get serious about the business of governing."