Reforms to slow down, Mittal lays down agenda for inclusiveness

New Delhi, May 27 (UNI) Mr Sunil Bharti Mittal, the new President of CII, today said he expects the reform process to slow down as a result of new found realties of politics, but offered no concrete solutions to the issues raised by Prime Minister Manmohan Singh recently to check inequalities and conspicuous consumptions.

''While the reform agenda has been laid out by the government, it appears that one will see very little action in the next year and a half due to the changing political landscape,'' Mr Mittal said in an interview to UNI.

The Chairman of Bharti Airtel Enterprises, answered a host of questions relating to the advice the Prime Minister recently gave to the industry on several issues, how India Inc plans to do its bit to achieve inclusive growth, reasons for his astonishing success in business, the changing political spectrum and its impact on economic policies, and issues pertaining to the World Trade Organisation (WTO) and environment.

Mr Mittal said the reform agenda which has already been outlined by the UPA government includes financial sector reforms, including raising of FDI caps in insurance, opening up of retail to the corporate sector, creating a competitive policy framework and carrying forward the process of liberalisation in various sectors.

Mr Mittal said he was no great expert in analysing the changing political equations, but his hunch was that the reform process could hit roadblocks.

While not spelling it out, Mr Mittal was hinting at the fact that populism would overtake rational and pragmatic policy making given the fact that general elections are just two years round the corner and the defeat of the Congress in the recent hustings would result in the UPA government developing cold feet on reforms.

The Prime Minister while recently inaugurating the CII AGM had spoken about the skyrocketing salaries of corporate leaders, the need to prevent cartelisation, not indulging in conspicuous consumption and adopting Gandhiji's model of trusteeship of wealth.

To a question relating to the Prime Minister's advice to the industry to prevent cartelisation and uncompetitive beahaviour, Mr Mittal said: ''The days of cartels are over as competition rules the roost. This is the result of more than a decade and a half of the reform process. Besides, the CII was wedded to promoting openness and intertwining the Indian economy with the Global economy.

This irons out the growth of monopolistic behaviour.'' Q: But, Europe and America, the champions of globalisation have significant amount of cartelisation and monopolistic behaviour? A: I am of the view that the answer to cartelisation is greater competition. We hold this close to our heart and work in this direction.

Q: The Prime Minister has said that excessive emoluments of top executives need to be discouraged. Besides he has stated that conspicuous consumption and vulgar display of wealth leads to social unrest.

A: The Prime Minister is referring to only a handful of Chief Executive Officers (CEOs) whose salaries are extremely high. Dr Manmohan Singh has suggested that one should not blindly ape the West and it was neccessary to evolve an Indian ethos, suiting the social, economic and political realities of the country.

In most cases wages and salaries are market determined. It is difficult to put a cap on them.

Q: You have said private sectors salaries cannot be legislated upon. This was never the case of the Prime Minister and he only wanted voluntary compliance of desisting from taking high salaries.

A: I made that remark in a different context.

Q: You have said the Prime Minister's advice of high emoluments was akin to that of a father's advice to a son. Is industry then a disobedient son? A: No answer.

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