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Economic reforms to continue, says Sinha

Yashwant Sinha, India's Finance Minister, said that he was determined to continue with the economic reforms process. He affirmed that his government was sworn to working in the best interests of the nation's development and would not flinch even while taking unpopular decisions if they benefited the country.

"The days of populists decisions, just to get the votes, are over and what matters is the country's future," Sinha said while addressing a meeting of the Non-Resident Indians, or NRIs, organised by the Federation of Indian Associations in Chicago.

The finance minister told the NRIs that the Indian government has pledged to make the investment climate of the country friendlier so as to attract more overseas funds. He also urged people of Indian origin to invest their talent and money in the country of their origin. He assured the NRIs of India's resolve to make conditions more conducive to investments.

Sinha said India is spending considerable resources in improving its infrastructure, power, telecommunications, roads, ports, etc. However, a majority of the rural folk were totally unaware of the strides that the country has taken. He said that 'people are living in several centuries simultaneously'. The gap between the rural and urban lifestyles is huge, he said, adding that India has to ensure that its less fortunate citizens too are able to enjoy modern amenities. He said that the government is taking steps to redress this disparity.

When asked about his reaction to the weakening rupee, Sinha said that the increase in interest rates in the United States has resulted in dollars flowing back into America. However, he asserted that the rupee had strengthened against some strong currencies like the euro. He said that this indicated that other currencies had depreciated much more against the dollar. He said that market forces influence the currency rate and the Reserve Bank of India intervenes whenever necessary. However, the government is not in favour of high volatility, he added.

He also defended India's decision to conduct nuclear tests, saying no other nations could dictate India where the nation's security interests are involved. 'Whether one likes it or not, India is a nuclear weapon state and to deny that status to it would be unrealistic', he told the audience amidst loud applause.

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