Good Economics,
Risky Politics
Defying the pressures of politics, Finance Minister Yashwant Sinha has come forth with a bold, hard budget. He has committed the Government to a slew of daring economic reforms through this year's budget. But, beyond the initial euphoria generated by sheer promises, lies a rough road to fulfilling them. Will the pressures of coalition politics and an irrational Opposition allow him to deliver?

Interview:
Yashwant Sinha
"It is my budget,
not the PMO's."

Smeltdown
The NDA Government handsomely wins a vote moved by the Opposition in the Lok Sabha against the privatisation of Bharat Aluminium Company (BALCO), but it should now start worrying about the poor response to bidding for strategic partnership of public-sector units.

Progress Report
With an overwhelming response from readers, the CARE TODAY society had funds flowing in from all quarters to aid it in its efforts to help those rendered homeless and jobless by the devastating earthquake of January 26.

Reeling Estate
Gujarat is witnessing a strange phenomenon with the two hands of the Sangh Parivar, the RSS and the VHP, earning public goodwill and the BJP leadership finding itself in the hot seat over links with the building mafia.

Bust to Dust
International outrage doesn't deter the Taliban militia from pushing ahead with its plan to destroy historical statues, including the 2,000-year-old Buddha statues in Bamiyan.

Piecing the
Ahar Puzzle Excavations of sites from the 4,500-year-old Ahar culture provide clues to the link between the Harappans and their predecessors.

COVER STORY: UNION BUDGET

FOOD ECONOMY

"We'll review Essential Commodities Act."
Sinha's budget commitment

GOOD ECONOMICS: Agriculture has missed out on all the fun that industry has had in the past 10 years of liberalisation. The Food Corporation of India's (FCI) overpowering presence in foodgrain purchase and laws like the Essential Commodities Act (ECA) have maintained the government's stifling control over agriculture and virtually killed private trade in farm produce. The proposals to confine the FCI to the maintenance of buffer food stocks (to be used in times of shortage) and dilute the
ECA are aimed at reducing government intervention and promoting private entry. Optimists hope for a smooth clearance of such proposals. Says Arvind Singhal, managing director of KSA Technopak, a consulting firm: "The budget talks of pruning the FCI's role, details of which will be worked out. It should not create problems in Parliament."

RISKY POLITICS: Singhal is in for a surprise. No less a politician than Manmohan Singh warns that the Congress will not support the Government on FCI's downsizing. "We oppose the dismantling of the FCI and shifting of the food procurement to the states," he says. States too are unlikely to agree to purchasing and distribution of foodgrains. Sinha has kept the room for a compromise open by offering to pick up the bill for states' purchase and distribution. To still reject the budget proposal, the states and the Congress will have to come up with a stronger, more plausible argument.

SSI RESERVATION

"We propose to dereserve 14 items."
Sinha's budget commitment

GOOD ECONOMICS: Really good economics demanded scrapping SSI reservation altogether. About 800 products are still reserved for production in the SSI and each of them will be freely importable from April 1 when India abolishes import licensing. Though quite late in the day, Sinha has at least taken toys and leather products out of the reserved list to allow for higher investment and better technology vital to compete with imports. But already, much of the Indian toy industry, including big names like Leo toys, has been throttled by imports from China. According to Singhal, these imports should help create political consensus for SSI dereservation.

BIGGER STRIDES: Leather units are now free of SSI limits

RISKY POLITICS: Politicians would rather prefer government subsidising the SSIs to opening them up for big investments. In the past such subsidies have not been very effective, as is evident from the rising sickness among SSIs. Used to government support, SSIs too are unwilling to come out of reservation. Complains Vijay Kalanti, president, All India Association of Industries: "Dereservation will lead to closures and unemployment." Kalanti will find politicians to take up his cause, only they will ignore the fact that reservation in the face of free imports will also lead to closures and unemployment.

MetroScape
Personality Matters Those behind the Grasim Mr India contest think it is one up over other male pageants.
But is it?
more...

Looking Glass

Mumbai: Swarovski Boutique

Delhi: Colours 'n' Spice

Delhi: Mindscapes

The Keoladeo National Park Sanctuary in Bharatpur gets an unprecedented number of migratory birds due to the dry spell last year. But experts feel another drought could be disastrous, writes INDIA TODAY's Supriya Bezbaruah in
Despatches.

"The only obvious competition is in bhangra," say the Pakistani duo of the music group, Strings, in conversation with INDIA TODAY's Sonia Faleiro in
Interviews.