Indian PM vows to pursue economic reform drive

Indian Prime Minister Atal Behari Vajpayee said Saturday his government was committed to accelerating economic growth and urged the states to speed up the process.

Vajpayee, in a speech to the Global Investor Meet (GIM) here in the southern state of Kerala, said strikes against reforms were harming the economy.

"While workers' interests should certainly be protected, is it in workers' or the states' interest to discourage investors through frequent strikes?" Vajpayee asked.

Vajpayee said the reforms that New Delhi was trying to implement were the outcome of "a well considered" and "long term strategy" to tap the country's immense resources and talents.

"Let there be no doubt that our objectives continue to be the removal of poverty, employment generation, environmental protection and social and economic justice," he said.

But to achieve these objectives, India needs to accelerate economic growth and the key to this is increasing the competitiveness of industries and businesses with global standards by providing a conducive climate to investors, the prime minister said.

India introduced economic reforms in 1991 but the pace of implementation has been slow.

Contentious issues, like privatisation of state-run units and labour reforms, have met with stiff resistance from within and outside India's ruling coalition.

The government has only managed to raise 50 billion rupees (one billion dollars) from privatisation in the current year against a targetted 120 billion rupees from the proposed sale of stakes in 27 state firms.

India has attracted foreign direct investment worth just 23.7 billion dollars since it embarked on its policy of liberalisation in 1991 -- roughly the same amount China received in a six-month period in 1999.