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Economic fundamentals strong: Jaswant

Finance Minister Jaswant Singh, said on Thursday the country's economic fundamentals were strong but there was a need to instill more confidence in domestic and foreign investors.

"The fundamentals are sound. There must be the instilling of much greater confidence in domestic and foreign investors," Singh told reporters after officially taking over as finance minister.

In what appears to be a clear shift in stance after Bharatiya Janata Party's poll debacles in states, Jaswant Singh said that his job was not that of a "policeman" but to ensure food for all, more money in the hands of people and instill confidence in investors.

"I do not treat the functions of a finance minister as that of a policeman. I have to do that which in simple terms will ensure food for the poor and provide more spending power to the citizens," Singh said after assuming office as the 29th finance minister.

Singh, who swapped the post with Yashwant Sinha in the recent cabinet reshuffle, said: "there should be more money in his (citizen's) pocket. There should be more money in the housewife's purse."

"The growth rate of 5.4 per cent is no mean achievement despite adverse global conditions," said Singh.

Indian economic growth rose to 5.4 per cent in 2001-02 (April-March), spurred by a rise in farm output, putting the world's second-most populous nation high in the ranks of its fastest growing economies.

The economy, ranked by the World Bank as the world's 13th largest, was hit by a global and domestic demand slowdown, higher oil prices and a weak currency.

But data in recent months raised hopes of a recovery, especially as the crucial agriculture sector showed a 7.6 per cent expansion in the fourth quarter compared with a 4.0 per cent contraction a year ago.

Two-thirds of the Indian population of more than one billion depend on agriculture for its living. A good harvest means better rural incomes which triggers higher demand and spending.

But even the 5.4 per cent GDP figure for the year ended March 2002 was far below the double-digit growth analysts and policy makers say is needed to raise living standards in India where nearly a quarter of the population live in poverty.

Turning to economy, Singh said prices are under reasonable control and balance of payments comfortable.

"I have to continue to strengthen the fundamentals and to address some of the infirmities," Singh said.

To a question on what he proposed to do about several important economic legislations that were pending for quite some time, Singh said when Parliament session starts "we will be addressing all those."

(With additional inputs from PTI)

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