OBSERVATIONS OF PRIME MINISTER
AT THE
SECOND MEETING OF THE COUNCIL
ON
TRADE AND INDUSTRY
ON 14.12.1998

I welcome all of you to the second meeting of the Council on Trade and Industry.

2. The Council on Trade and Industry is an institutionalized framework that we have created for partnership between government and business. This partnership flows from our overall philosophy of economic reforms. I believe that the business of government is to govern — and govern well. The business of business, both in the public and in the private sector, is to create wealth for the nation so that we improve the living standards of all our citizens.

3. Our last meeting resulted in an useful interaction of ideas over a broad spectrum of economic issues. You would recall that in order to give tangible shape to our ideas and evolve a coherent Action Plan we decided to set up six Special Subject Groups. I am pleased to inform you that we have since received Six reports covering the following areas :-

INFRASTRUCTURE under the convenorship of Shri Ratan Tata;

CAPITAL MARKETS AND FINANCIAL SECTOR INITIATIVES under the convenorship of Shri Mukesh Ambani;

FOOD & AGRO-INUDUSTRIES MANAGEMENT POLICY under the convenorship of Shri Nusli Wadia;

KNOWLEDGE-BASED INDUSTRIES under the convenorship of Shri N. R. Narayanamurthy;

SERVICE INDUSTRIES under the convenorship of Shri A. C. Muthiah; and

ADMINISTRATIVE AND LEGAL SIMPLIFICATIONS under the convenorship of Shri Kumar Mangalam Birla.

These reports have been prepared with the active participation of all Members of the Council in one form or the other. Fruitful discussions were also held with various officers of the concerned Ministries and Departments of the Government as well as specialized organizations.

I have had occasion to glance through the reports particularly the Executive Summary and Action Points emanating from each one of them. I must place on record my appreciation of the high quality of diligence and devotion shown by each one of you. The Reports set out the broad Agenda for Action over a wide gamut of subjects and deserve our careful consideration.

I would suggest that we adopt the following course of action for further processing of these ideas. And move on from "Ideas to Implementation". We will be taken seriously if people perceive that we not merely produce "good reports" but also take action on them. Take them quickly. And take them comprehensively to address the issues in their entirety.

FIRST, I suggest we make the Reports public. I am asking a "Web-Site" to be created and the Reports to be put on the Internet. Thereafter, FICCI, CII, and ASSOCHAM should hold seminars and discussions both in Delhi and elsewhere on these Reports to secure a broad public consensus. This would greatly contribute to a healthy and enlightened public debate on important economic issues. These Reports have enriched the literature on the subject and can make our public discussions more focussed for devising a coherent implementation plan. This will also contribute to what I have said before, namely, to de-politicize the agenda for Economic Reforms.

SECOND, I think many of these recommendations require urgent attention. Quite a few of them constitute inputs in our "Budget Making" process. I have always wanted Budget making to be demystified and become more transparent. In fact, countries all over the world undertake important policy changes whenever they become necessary without waiting for a Budget. Regrettably, we continue to be prisoners of the past in our approach to the Budget. A debate on the many of the recommendations contained in these Reports would contribute to transparency in our Budget-making process.

THIRD, economic policy making spans a wide spectrum. It goes way beyond Budget Making. It may be worthwhile for me to constitute an Empowered Committee to consider the recommendations contained in these six Reports. And in areas where there is a broad consensus, begin their implementation straightaway. We can take stock of the progress made in about six weeks and consider further measures to speed up progress.

FOURTH, there is the issue of convergence. Since we last met over two months ago, there have been developments and progress in other sectors. A Taskforce on Infrastructure has been constituted to deal with Airports and Roads to evolve an Integrated Transport Policy. A Group on Telecommunication has also been constituted to sort out the current problems and to suggest the features of a New Telecom Policy. The second report of the Group on Information Technology has since been received. The developments in these Groups need to be recognized by the Council. The progress made in these Taskforces needs to be integrated with the approach which we adopt while discussing these issues.

7. I would once again like to thank you for sharing your vision of development with the Government. I assure you that you would not find us wanting in the commitment to evolve policies that can put India on a high growth path. And to achieve this by fostering a constructive partnership between all segments of our society. This Council represents a key element in this trust — an interaction between Government, Trade, and Industry. In our deliberations over the coming months, it will be our desire to broaden and deepen this co-operative endeavour.

8. If this approach is acceptable to you, it will then be useful for us to briefly hear the Convenors of the Special Subject Groups. And have a short presentation on the broad thrust of their recommendations. Thereafter, we could have a further discussion both on the recommendations and your views on the ideas outlined before you in relation to our Implementation Strategy.

Thank you,