• Military

• WMD Menu                           

• Introduction
• Systems
• Facilities
• Agencies
• Operations
• Countries
• Hot Documents
• News
• Reports
• Policy
• Budget
• Congress
• Links

• Intelligence
• Homeland Security
• Space

DATE=6/1/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-233139
TITLE=INDIA BUDGET (L)
BYLINE=JIM TEEPLE
DATELINE=NEW DELHI
CONTENT=
VOICED AT: 
INTRO:  INDIA'S HINDU-NATIONALIST LED GOVERNMENT HAS ISSUED ITS 
NEW BUDGET FOR THE NEXT 12-MONTHS.  CORRESPONDENT JIM TEEPLE 
REPORTS THE BUDGET WAS UNVEILED AS ECONOMIC GROWTH IS SLOWING IN 
INDIA -- AND ALSO AS SANCTIONS IMPOSED AFTER INDIA'S NUCLEAR 
TESTS ARE BEGINNING TO TAKE EFFECT. 
TEXT:  FINANCE MINISTER YAHSWANT SINHA TOLD PARLIAMENT THE 
SANCTIONS WILL NOT HAVE MUCH OF AN IMPACT ON ECONOMIC GROWTH, 
BECAUSE HE BELIEVES COUNTRIES THAT IMPOSED SANCTIONS WILL 
EVENTUALLY BACK OFF THEIR TOUGH STANCE. 
                 /// INSERT SINHA ACTUALITY ///
         WHILE THE PEOPLE OF INDIA HAVE REACTED WITH PRIDE OVER 
         THE EVENTS OF MAY 11TH (FIRST NUCLEAR TESTS) SOME OF OUR
         FRIENDS ABROAD HAVE RESPONDED NEGATIVELY.  I AM 
         CONFIDENT THAT THESE INITIAL NEGATIVE RESPONSES WILL BE 
         MODERATED AS OUR POSITION GETS BETTER UNDERSTOOD. 
                      /// END ACTUALITY ///
INDIA'S FINANCE MINISTER SAYS HIS GOVERNMENT IS EAGER FOR FOREIGN
INVESTMENT AND WILL PUT FOREIGN INVESTMENT PROJECTS ON A 
NINETY-DAY FAST-TRACK APPROVAL PROCESS.  
DESPITE INTERNATIONAL CONTROVERSY OVER INDIA'S NUCLEAR TESTS, MR.
SINHA PLEDGED TO INCREASE SPENDING ON NUCLEAR ENERGY BY 
68-PERCENT IN THE COMING YEAR.  SPENDING ON INDIA'S SPACE PROGRAM
WHICH DEVELOPS THE COUNTRY'S MISSILES WILL BE INCREASED BY 
62-PERCENT AND SPENDING ON DEFENSE WILL GO UP BY AT LEAST 
14-PERCENT WITH FURTHER INCREASES POSSIBLE. 
                          /// OPT /// 
MR. SINHA PLEDGED NO NEW TAXES THIS YEAR AND HE SAYS PRIVATE 
INDIAN COMPANIES WILL BE ABLE TO INVEST IN THE COUNTRY'S 
GOVERNMENT-CONTROLLED INSURANCE INDUSTRY.  INDIA'S FINANCE 
MINISTER ALSO SAYS THE GOVERNMENT WILL SELL OFF ITS SHARES IN 
INDIAN AIRLINES AS WELL AS IN SEVERAL OTHER STATE-OWNED 
COMPANIES.  SUDHIR JALAN THE PRESIDENT OF BELLS CONTROLS, INDIA'S
LEADING CONSUMER ELECTRONICS COMPANY SAYS THE REFORMS ARE 
WELCOME. 
                 ///  INSERT JALAN ACTUALITY ///
         THERE IS A MOVE TO DISINVEST MORE AND MORE WHICH IS 
         CONSIDERED POSITIVE, INSURANCE IS BEING OPENED UP TO THE
         INDIAN PRIVATE SECTOR, THAT IS POSITIVE AND SOMETHING WE
         HAVE BEEN ASKING FOR.  SO THE FIRST REACTION IS VERY 
         GOOD. 
                   /// END ACT // END OPT ///
ECONOMIC GROWTH IN INDIA DROPPED FROM MORE THAN SEVEN-PERCENT TO 
FIVE-PERCENT LAST YEAR AND INFLATION WAS UP FROM FIVE-PERCENT TO 
NEARLY SEVEN-PERCENT.  IN RECENT DAYS, INDIA'S CURRENCY, THE 
RUPPEE, HAS ALSO DROPPED TO AN ALL-TIME LOW.
ECONOMIC SANCTIONS IMPOSED AFTER INDIA'S NUCLEAR TESTS ARE ALSO 
STARTING TO TAKE EFFECT.  THE WORLD BANK RECENTLY PUT A HOLD ON 
MORE THAN 800-MILLION DOLLARS IN LOANS WHICH WERE TO HAVE BEEN 
SPENT ON IMPROVING INDIA'S INFRASTRUCTURE.   (SIGNED) 
NEB/JLT/LTD/RAE
01-Jun-98 10:53 AM EDT (1453 UTC)
NNNN
Source: Voice of America
.