Selloff on merits: PM

Declaring that India is working on a "new model" to integrate itself with the increasingly interdependent global economy, Prime Minister Manmohan Singh today assured top British businessmen that the country welcomes foreign investments but said privatisation as an ideology was unacceptable.

Addressing 23 top chief executives of Britain at a breakfast meeting here, Singh said, "India is working on a new model in the increasingly interdependent global economy.... India today is more open and welcomes foreign investments.

We do not accept privatisation as an ideology. We do not take an ideological view of privatisation but take a pragmatic view and, wherever it serves national purpose, we will pursue privatisation," he said.

On India's views on the World Trade Organisation (WTO), the Prime Minister was quoted as saying by his media advisor Sanjaya Baru and external affairs ministry spokesman Navtej Sarna that "India was for a rule-based global trading regime."

Singh also spoke of a healthy trend in trade relations with China.

Asked about the current pace of political debate on privatisation, Singh said, "Profit making public sector undertakings (PSUs) were working in a competitive environment. There was no earth-shaking reason to pursue privatisation."

On privatisation in the Railways, he said, "This has not engaged policy attention in India. But in the future, there could be a debate on this."

Asked about the draft paper of the Reserve Bank of India (RBI) on foreign investment in private banks, Singh said, "The RBI has initiated debate on its draft note and a final word has not been said on the government policy.

Based on the feedback, the government will evolve a policy in this regard". He said the RBI Governor Y V Reddy has also clarified that this was a draft note for debate and discussion, and the final decision of the government has not yet been announced.

The issue of a hike in the foreign direct investment (FDI) limit in insurance from 26 to 49 per cent also figured in the meeting and the prime minister explained that government policy remains what Finance Minister P Chidambaram announced in the Budget, officials quoting the Prime Minister said.

Singh said there was need for further dialogue with Left parties and expressed hope that things would work out by the next session of Parliament.