Reforms to get a boost now: Montek Singh

Planning Commission Deputy Chairman Montek Singh Ahluwalia said the government would bring inflation down to comfortable levels soon.

The inclusive growth agenda of the government remains firmly on track, he said. "We will push ahead on the path of reforms. Since the time before elections is limited, we need to push everything we can."

Excerpts from CNBC-TV18’s exclusive interview with Montek Singh Ahluwalia:

Q: The Finance Minister (FM) has already given out a statement that he will take economic reforms forward. How hopeful and optimistic are you that we are actually going to see momentum building up as far as the reform agenda is concerned?

A: We have just had a tremendous reaffirmation of trust. I am sure that the government has every reason to be extremely satisfied with the very strong, very clear vote on this matter. On the issue of what happens next, obviously, there will be a lot of discussion. The government has a big agenda.

Q: With the Left out of the picture now, is it going to give the government more elbowroom to push forward as far as contentious reforms are concerned, especially in the banking, insurance and retail space?

A: I don’t want to speculate on what exactly the government will do in the present situation. In the time between now and the elections, which is actually limited, there are major priorities and we ought to push ahead in all of them in the best way we can.

Q: What more can we see happen on the inflation front post the vote?

A: You will soon have a monetary policy statement by the RBI. So, I don’t want to speculate. But there is some softening on the international crude prices. If that continues and it is also extended to other commodities, that will make things a lot easier on this front. There are actions that we can take at home.

I am fairly confident that we will be able to bring inflation down over the next couple of months or so and start getting it down and hopefully to reasonably comfortable levels very soon.

Q: In the past couple of weeks, there has been a fair amount of uncertainty in the minds of global investors as well as domestic investors. What is your message to people watching the Indian markets and the Indian economy at this point in time?

A: In a democracy, you get a lot of discussions and a lot of debate. But underneath it all, there is a very substantial consensus of opinion. The fact that after all this debate, you have had a very convincing victory for the government from the trust vote, should suggest to the investors that the course that the government has set, has very broad-based support.

We have short-term problems like inflation, so does every other country in the world. But we know what to do about it and the broad thrust of reforms, the broad thrust of inclusive growth remains firmly on the agenda. Investors who are in it for medium to long-term should not worry.