Thursday, May 19 2005 16:37 Hrs (IST) - World Time -

Sydney: Allaying fears that Left parties were derailing economic reforms in India, Commerce Minister Kamal Nath today (May 19, 2005) asserted that liberalisation process was irreversible and based on "broad consensus".

"A distinguishing feature of the reforms process has been its continuity and it is based on broad consensus," Nath told Australian business community in Sydney.

The Communist parties, which are in power in West Bengal, were also keen on attracting foreign investment in the State, Nath said.

Wooing Foreign Direct Investment (FDI) was an integral part of both at State and Central level, he said, quoting West Bengal Chief Minister Buddhadev Bhattacharjee.

When the Congress-led United Progressive Alliance (UPA) Government came to power with the support of the Left parties last year (2004) many people in India and abroad were sceptical about continuation of reforms given the pressures of coalition politics, he said.

But the reforms process has continued on the basis of broad consensus, he added.

Nath, who also inaugurated the 'Destination India' summit organised by Federation of Indian Chambers of Commerce and Industry, invited Australian entrepreneurs to invest in India and assured the government's commitment to reforms.

"The present Government is committed to economic reforms and was examining an India specific model for FDI into retail. Economic reforms are irreversible. We have calibrated them to India's specific needs," he said.

India has been Australia's fastest growing exports market during the last five years and has overtaken Britain to become Australia's sixth largest export partner.

Total bilateral trade of goods and services stands at about 5.6 billion dollar at present. India is Australia's 13th largest trading partner while Australia is India's eight largest overseas investor.