22 May 2004	Saturday	02 Rabi-us-Saani 1425

NEW DELHI: When India threw out a pro-growth government in an election shock this month, many saw it as the revenge of the rural poor. India's economy had been booming but they had been left out.

But as the left-backed Congress party coalition taking power this weekend scrambled to put together economic policy that will reflect the vote, analysts said the new rulers could not ignore the old reform policies. Rather, they will be embraced.

The new government will continue the reforms launched in 1991, albeit with a new face. India just cannot afford to turn its back on a programme that has given it a 7-8 per cent annual growth rate, among the highest in the world, the analysts said.

"The reforms will continue, it doesn't really matter who is there," said Surjit Bhalla, managing director of Oxus Fund Management. "Rhetoric is part and parcel of the game. A little bit of political emphasis, especially just after an election, is fine."

The country's markets tumbled when it became clear left-wing parties would provide pivotal support to Congress. They surged when the original architect of the reform programme, former finance minister Manmohan Singh, was designated prime minister. But the markets have been volatile since, as they anxiously await the effect the vote will have on policy. -Reuters