Washington: The Wall Street Journal today (May 17, 2004) reflected fears of the American business community that the Communist allies of the Government to be formed by Sonia Gandhi will slow down economic liberalisation, for they are "against the economic changes pursued by the outgoing Government" headed by Prime Minister Atal Bihari Vajpayee.

"Foreign and local investors," the daily pointed out, "punished India's financial markets" largely on fears that the country's economic changes could be derailed by the influence of the Left Front."

"While the leaders of the Communist Party of India (Marxist) and Communist Party of India, the two largest members of the Left Front, have stated support for Gandhi," the paper pointed out, "they also have said they are against a number of key economic changes pursued by the outgoing Government led by the Bharatiya Janata Party. This has raised fears that India's Government again will seek to play a major role in business."

In particular, "the Leftists said they would seek to block the privatisation of profitable State-owned companies, and would oppose any proposals to allow more foreign investment in India's insurance, banking and retail sectors".

They also said they would aim to have the Government more aggressively tax Indian corporations and keep providing subsidised energy to India's largely rural population."