The Hindu Business Line : Shourie for long-term view on economy

Mr Arun Shourie, Union Minister for Communications, IT and Disinvestment, addressing the gathering at the 10th anniversary celebrations of The Hindu Business Line in Chennai on Tuesday. Mr K. Venugopal, Executive Editor, Business Line, Mr K.V. Kamath, Managing Director and CEO, ICICI Bank, Mr N. Murali, Joint Managing Director, The Hindu, Mr N. Ram, Editor-in-Chief, The Hindu, and Mr R. Seshasayee, Managing Director, Ashok Leyland Ltd, look on. — Bijoy Ghosh

Chennai , March 23

THE Union Government will become an enabler of enterprise rather than a supporting entity in the coming years. Its focus after the elections would be on governmental processes and tackling the impact of change, according to Mr Arun Shourie, Union Minister for Communications, Information Technology and Disinvestment.

An essential function of the State should be to anticipate and prepare for the fall out of changes in the policy environment driven by global competition. But there has not been enough attention paid to assess and enhance awareness of the impact of such developments on domestic industry.

Addressing the 10th anniversary celebrations of The Hindu Business Line here today, he said the Government should look at both the long term and short-term effect. "Not just five years from now but also 20 years and tomorrow," he said.

For instance, the quota regime is set to end in 2005. "But are we prepared?" he wondered. "What is the impact that textile units in Bangladesh can have on the ones in Ahmedabad in the backdrop of the South Asian Free Trade Area?

"Though changes will cause dislocation, we need to look at ways to address it," he said. In the last few years there had been a commitment to reforms. Now the processes need to be put in place.

The Government would propel private enterprises by intensifying competition. The State would enable through infrastructure support and public private partnership, he said.

Over the coming years, India should look at better definition of regulators and regulatory systems, focus on research and development and address ecological issues, which had been left entirely to the activists.

Mr Shourie said journalists and academicians had not done enough to intellectually and critically shape policies. There was a need to prevent the collapse of standards in educational institutions, he said.

The press had to be the guide. But it had "fallen prey" to disguising corporate interest as policy issue. Faithful reporting is needed. Journalists need to make a stand on issues and not vacillate. They need to "document, argue and educate", Mr Shourie said.

The character of Indian industry had changed in the last decade. Companies had not only made a mark in international markets but also gone global by acquiring businesses abroad.

Estimates of the Federation of Indian Chamber of Commerce and Industry show that over $2 billion has gone into such acquisitions. This change, from pessimism in the initial stages of globalisation to newfound confidence has happened thanks to exposure to international competition, according to Mr Shourie.

Traditional wisdom and diversity had helped Indian enterprises thrive in the face of global competition. The support within communities that had ventured into businesses was in itself a model of a social safety net, he said.

The Hindu Business Line's Executive Editor, Mr K. Venugopal, in his welcome address detailing the developments over the last decade said the daily had provided pertinent information and insights into decision-making, and offered analysis and comment on policies and strategies.

But while appreciating the changes it had also drawn the Government's attention to the needs of those affected by the changes and advocated policy responses to alleviate the sufferings. The lack of a social safety net had made the change more painful. The farm sector still remained beyond the pale of beneficial reforms, he said.

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