From: reddym@Barra.COM (Reddy Mallidi)
Subject: India - Ayodhya Crisis Will Not Stop Economic Reforms - Manmohan Singh
Organization: BARRA, CA
Date: Mon, 14 Dec 92 11:55:28 GMT


     Source : Financial Times, Wall Street Journal
     Date   : Dec 11, 1992
     Country: India

                                * * * *

  * BJP sees Ayodhya as a desperate rallying call

      The BJP seems to scorn the idea that the Ayodhya incidents will back-
  fire against it. "It is only the upper classes who are shocked by this;
  the masses are delighted.", said Mr Keval Ratan Malkani, vice president of
  the BJP. The Delhi intelligentia believes that Mr Malkani is quite wrong.
  News paper commentators insist that now most Indians will reject the BJP
  on the grounds that it foments intolerance. But the BJP has long learnt
  to do without the support of the commentators. The crisis has suddenly
  focused BJP's energies. All the arguments over strategy and tactics which
  dogged it over the last years as it saw its popularity waning have been
  set aside. So clear is the aim of advancing Hindu militancy that the arrest
  of BJP leaders has barely curtailed the party's activities. After winning
  power in four states, it has lost ground. It was unable to seriously 
  challenge Mr Rao's economic reforms - a key issue over the past 18 months.
  Moreover, even as they were wooed by the cause of Hindu unity, Hindus could
  hardly forget their many differences - including caste, language, wealth
  and regional origin. 
     This autumn, when the Ayodhya issue had temporarily gone quite, an
  opinion survey showed that Mr Advani was wanted by just 14% of those polled
  as against 49% for prime minister Mr Rao. Mr Pran Chopra, a leading 
  political analyst, is convinced that Mr Advani's rating has fallen further
  this week. Mr Chopra believes that voice moderation will prevail - a view
  shared by other analysts. (FT Dec 11)

  * Economic reforms unaffected by Ayodhya crisis
					Wall Street Journal - Dec 11, 1992

      Mr Manmohan Singh, the key architect of the India's economic reforms
  pledged that the wave of religious violence would not stop the program
  from proceeding. "The reforms will continue. There should be no doubt about
  that. We have a program and it is on course", he said. Yesterday, Mr Singh
  and other officials said they were moving ahead with a planned restructuring
  of the petroleum industry, which had been dominated by state companies. They
  indicated that tax reforms are in the works and are likely to be revealed
  in the next budget in Febraury. Montek Singh Ahluwalia, a leading civil
  servant in the ministry of finance, said that the government expects the 
  foreign investment to continue despite the violence during the last week,
  citing a meetings of a ministerial committee to approve proposals of
  more than $100m. He said that the committee on Wednesday approved a Thai
  investment of $120m. Dismissing concerns he said, "you have to see not
  what the people say, but what the government does."
     Despite initial fears that Mr Rao will be under pressure to resign,
  officials have been at pains to demonstrate that the Mr Rao's government
  remains firmly in control. Business initially feared that the upheaval
  could bring down the government.Now, some business leaders said they 
  believe the Rao government appears to have gained control. Some businessmen
  appeared prepared to accept the view of Mr Manmohan Singh, "country has 
  the resilience to take these events in its stride, and the riots are 
  an aberration". "I think the reforms are on track", said Tarun Das,
  director general of the Confederation of Indian Industry. 

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