India has a poor track record in completing projects to boost its overloaded infrastructure, seen as vital to promote long-term growth. Shourie said one solution would be to reward state governments that expedited projects.

Investment would come in, even in the current environment, if the government showed it could deliver, he added.

"Money will come forward, the Indian investor will come back. He will certainly come back in government-guaranteed debt provided he is confident that the government will go ahead with the project and execute it efficiently."

India could also tap expatriate investors through a special deposit scheme, as it did in the 1990s, and court the wealth of Middle East states.

"We should approach them, but they will not give it to us, will not deposit with us, if we live up to our reputation of not being able to execute the projects efficiently."

Privatisation has proved almost impossible for the present government due to opposition from its allies and then to a falling stock market, and any future government is likely to face similar coalition pressures.

Shourie said the BJP would not be dogmatic about any specific proposal or make ‘any particular reform a fetish’.

Instead, he was keen on promoting higher education with foreign participation to resolve a massive skills shortage, pursue green technology and private participation in defence production, and improve overloaded city infrastructure.

The current coalition has stressed the need for double-digit economic growth like neighbouring China, to create jobs and reduce poverty in the world's second most populous nation.

... contd.