Political will can't be legislated: Manmohan

Manmohan Singh

On job quotas in the private sector
The private sector should show sensitivity towards the need to enlarge employment opportunities for SC/STs, OBCs and other disadvantaged groups. We will not force job reservations.

The modalities will have to be worked out in close consultation with the private sector. The Group of Ministers set up for the purpose will engage in a constructive dialogue with industry to see what is possible without legislation.

On the FDI cap hike
We hope we can persuade the Left to see our point of view. We are sure our constructive dialogue with them will help us to go ahead on some of the proposals. There is no doubt that the country needs large doses of foreign investment and the whole idea has to be sold to our coalition partners.

On inflation management
The inflationary pressure is because of the flare-up in global prices of oil and steel, delayed monsoon and the truckers' strike, apart from liquidity overhang built over the last two years.

But we will surely gain mastery over inflationary expectations. Firm steps will be taken to control inflation without hurting growth.

There is no reason to worry as we have adequate food grain reserves and foreign exchange reserves to deal with the situation. The Centre, however, will not initiate tighter monetary policy to control inflation as it is the preserve of the Reserve Bank of India.

On faltering economic growth
There is no evidence of faltering economic growth. Industry is growing much faster than last year, exports are booming and the investment climate is buoyant because non-food credit is picking up.

Agriculture, which had been ignored in the past couple of years, will be given priority to fuel growth and generate employment. We will give shape to the policy adjustments shortly. The government is working on a strategy to achieve 7-8 per cent economic growth.

On the progress of reforms
We are determined to stay the course on reforms. The common minimum programme commits us to a reforms path. Reforms have had positive results, but there have to be mid-course corrections.

The situation is not the same as in the nineties when we started the reforms process. We now need a balanced approach. For example, the benefits of growth have to reach all people. On the political will to steer reforms
Political will is not something which can be legislated. One should not believe what politicians say when they are out of power. It is important to listen to them when they are in power.

For example, the Punjab government had come to power with the promise that they would give free electricity. But once they were in power, the same party realised the adverse consequences of such a move, and the decision was reversed.

On public sector disinvestment
We have no ideological aversion to disinvestments but if a company is making profits in a competitive environment, there is no earth-shaking reason for disinvestments.

Public sector companies and nationalised banks will be encouraged to enter the capital market to raise resources and offer new investment avenues to retail investors.

The Board for Restructuring Public Sector Enterprises will identify ailing PSUs that could be revived and those that needed to be sold. I hope the board does not become an instrument of perpetuating the loss making character of a large number of PSUs. The interests of the workers will be protected while resolving the problems.

On stock markets
I do not understand the dynamics of stock markets. But a healthy market is the most desirable thing we want to see. We want to create an environment which is conducive for healthy risk-taking, growth, savings and investment. Genuine investors should rest assured that we will not pursue a path that is not investor-friendly.

On river-linking projects
The issue has been discussed and included in Plan documents from the early 1980s. Discussions are being held but we are not in a position yet to take investment decisions.