India's economy: An election issue
Do Rao's reforms help or hurt?
May 6, 1996
Web posted at: 9:50 p.m. EDT (0150 GMT)From Correspondent Ashis Ray
(CNN) -- The next phase of India's six-stage national elections begins Tuesday with the country's economic health among the issues for voters to consider. Campaigning for his ruling Congress Party, Prime Minister P.V. Narasimha Rao talks of stability and the need to stick with economic reforms he unleashed in 1991. Factory worker Jaswant Singh agrees.
In their new home, Singh, his wife and family appear to be living a happier, more contented life than before, and they credit Rao. Once a farmer, Singh, 35, now works near New Delhi for Asahi India Safety Glass Limited, a Japanese company that's India's biggest manufacturer of car windows.
His pay is 5,000 rupees a month, equivalent to less than $150 in the United States. But it's a reasonable sum in India, enough for Singh to provide his family with a new house and send his children to a "good school."
International investment up in India
Reforms pushed by Rao have opened India to international investment, and the auto industry is among the country's success stories. Five years ago it consisted mainly of domestic manufacturers, producing stripped down models outdated by international standards. Since then, however, Suzuki, Daewoo, Opel and Mercedes Benz have started assembling vehicles in India and more auto-makers are expected.
Decades of protectionism and chronic bureaucracy have caused some stumbles along the way, but India appears on its way toward becoming a free market. "Companies are free to grow, invest and trade," says an enthusiastic Tarun Das of the Confederation of Indian Industry. "Indian partnerships are growing. In the last five years, there have been 8,000 new collaborations."
Critics, including India's main opposition party, the BJP, see economic liberalization as harmful. In their view, rich international firms are getting richer at the expense of India's poor. "The biggest shortcoming is the government's inability to control prices. Inflation has been the main headache as far as the common man is concerned." says BJP economist Jay Dubashi.
Related stories
- Pivotal Elections: India
- Rao's spiritual adviser behind bars - May 3, 1996
- Millions voting despite violence - May 2, 1996
- India's 'festival of democracy' - May 1, 1996
- CNNfn - India economic reforms threatened - April 26, 1996
Related sites
- Asahi Glass Company
- CyberPolls - Indian Election 1996
- Confederation of Indian Industry
- Yahoo!'s listing of Indian Businesses
Related newsgroups
FeedbackSend us your comments.Selected responses are posted daily. |
|
![[Imagemap]](/WORLD/images/9601/navbar2.gif){kind=small}
Copyright © 1996 Cable News Network, Inc.
ALL RIGHTS RESERVED.
External sites are not endorsed by CNN Interactive.
