will Indian Economic Reforms Hold?

The recent moves by the Indian government are considered very positive by those watching the country, but the question remains on whether or not Prime Minister Manmohan Singh has the character and strength to keep the proposed measures in place, after reneging on retail reforms earlier in the year.

This time around the government of India has said it will allow foreign supermarket chains to compete in retail markets, as well as open up the airline sector and broadcasting to foreign investment.

Also of significance is the announcement India will be selling stakes in four of the industries run by the state. It will also cut fuel subsidies.

Again, the question is whether or not the Indian government will hold its ground in the midst of fierce opposition from within the country.

India will never reach its potential until it does, and it has been dragging its feet far too long in order to get the country moving in a significant economic manner.

Until the government proves they'll stick with a plan, it won't do much to get the Indian economy going in any sustainable way.

The country also much attempt to do something about its high inflation, capital costs and high energy prices. Consequently, investment demand is weak both externally and internally as a result.

India Eyeing Assets of BP in Vietnam

BP (NYSE:BP) has let it be known that they are looking for buyers of their assets in Vietnam, and India has stepped forward first to say they're interested in the projects there.

Oil Minister Murli Deora said government-run businesses are going to negotiate with PetroVietnam, which is the largest oil producer in the country, about acquiring assets held by BP.

Also reportedly on the table is a $1.3 billion stake BP holds in the Nam Con Son gas project, among the largest of investment projects from foreign companies in Vietnam.

Among assets held in Nam Con Son are a gas-run power plant, pipeline, and the Lan Tay and Lan Do gas fields.

The sales of these and other assets are for the purpose of raising capital to put in the $20 billion escrow fund, and other related liabilities.