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India announces voter-friendly policies as poll looms

NEW DELHI, Wednesday (Reuters) India announced a range of measures designed to appeal to voters as the government prepares for early national elections.

The ruling Hindu nationalist Bharatiya Janata Party is seeking an early election to capitalise on a booming economy, a soaring stock market, state electoral gains, a faltering opposition and peace moves with neighbour Pakistan.

The economy, Asia's third largest, is expected to grow more than seven percent in the year to March 2004, placing it in the ranks of the world's fastest growing economies. The government has already announced billions of dollars worth of tax cuts and other reforms to woo the middle class and business, but has not yet called the election.

Cabinet spokeswoman Sushma Swaraj said the national commission for farmers would review the state of the agricultural sector and farmers' conditions. It would also suggest measures for sustainable and equitable farm development.

Nearly 70 percent of India's more than one billion population earn a living from agriculture in the world's largest democracy. The government also said it would introduce measures to provide zones where street hawkers could trade legally.

"Street hawkers are an integral part of our economy. The policy would seek to end the harassment they face from the police and civic authorities," said Swaraj. Analysts said the measures were aimed at wooing voters ahead of an election.

"This is populism run amok. If the government thinks people can't see through this they are mistaken. This overkill will not get them anywhere," said political commentator Inder Malhotra. "People in this country know that policies are announced but they are seldom implemented."

The cabinet also approved spending around 130 billion rupees ($2.86 billion) on developing villages to prevent migration to the cities.

"Villages near cities with 100,000 population will be provided roads, Internet, telecoms and information technology services," Swaraj said.

"They will be provided knowledge connectivity in the form of good schools and training institutions and market connectivity for farmers to enable them get a better price for their produce."

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