The Indian Budget 1996-97 The Indian Economy Overview

[Indian Economy Basics] [Related Pages: 1 2 3 4 5 6 7 ]

INDIAN ECONOMY BASICS: The Common Minimum Programme

The Common Minimum Programme is the United Front coalition government's economic manifesto - a pre-budget peek at the finance minister's plan for the Union Budget 1996-1997.

The United Front's pre-budget policy blueprint, the Common Minimum Programme, sets high goals for the new government and promises to keep the economic reform program on track.

It calls for gross domestic product to grow by 7 percent per year in the next decade, up from 6 percent in March 1996. It says India needs $10 billion a year in foreign direct investment, up from a record $2 billion in 1995. It also hopes to achieve annual industrial growth of 12 percent, up from 1995's 9 percent.

Illustrating the UF's delicate equilibrium of reformers and leftists, certain non-core state firms will be considered for privatisation, while others will be strengthened with better management. Likewise, investment in the consumer goods sector, which caters to the affluent, will be discouraged, while the infrastructure (power, telecommunications, etc.), will be made a priority.

While foreign investors see some positive angles to the Common Minimum Programme, they say they are waiting for more details when Mr Chidambaram presents the budget in mid-July.

[Indian Economy Basics] [Related Pages: 1 2 3 4 5 6 7 ]

Shalini Gupta is a merchant banker with one of the foremost financial institutions in India, and an expert commentrator on the fundamentals of the Indian economy.

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