Pepsi generation. (Indian economy)

Economist (US), The, June, 1990

THE manifesto that won last November's Indian election for Mr. V.P. Singh's National Front was stuffed full of old-fashioned big-government promises. Cynics laid bets on how long it would take the minority government to come to terms with reality. Mr Singh has now set his colleagues firmly on the road to liberalisation.

Foreign investment is the key. The new government has opened the door to it. The old practice was to declare certain parts of the economy open to investment, implying that the rest would remain closed. At the beginning of May the prime minister told the governors of the Asian Development Bank, meeting in Delhi, that India would welcome foreign investment in all but a few things, adding that the rules for investors would be more clearly...

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