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INDIAN POLITICS UPSTAGES ECONOMICS IN 2002.

AsiaPulse News

| January 02, 2003 | COPYRIGHT 2003 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

NEW DELHI, Jan 2 Asia Pulse - Politics had the better of economics during 2002, which saw a setback to reforms particularly with disinvestment and Foreign Direct Investment growth already hit by severe drought in fourteen states.

But there were positive signals as the year closed with the political consensus to go ahead with the divestment of oil PSUs and the passage of crucial legislation in December, which would serve as buliding blocks to speed up harsh reforms during the budget in the new year.

Godhra and the lacklustre 2002-03 budget, which provided no major incentives to industry at a time when there were signs of recovery, dampened the prospects already hit by the monsoon failure resulting in growth projections being revised downwards to 5-5.5 per cent for the fiscal year.

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Source: HighBeam Research, INDIAN POLITICS UPSTAGES ECONOMICS IN 2002.

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