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DATE=10/25/1999 TYPE=CORRESPONDENT REPORT TITLE=INDIA / GOVERNMENT (L) NUMBER=2-255431 BYLINE=ANJANA PASRICHA DATELINE=NEW DELHI CONTENT= VOICED AT: INTRO: India's Hindu nationalist-led coalition government promises bold economic reforms, and says it wants to modernize the country's defense after the recent military conflict in Kashmir. It has also expressed concern over the situation in Pakistan. The government outlined its policies Monday during President K.R. Narayanan's traditional address to newly-elected members of Parliament. Anjana Pasricha has a report from New Delhi. TEXT: President K.R. Narayanan said the recent military takeover in Pakistan is a matter of "grave concern", which the Government is watching closely. He was silent on the government's plans to open a dialogue with Pakistan's new military rulers, but accused India's neighbor of stepping up cross-border terrorism. /// 1ST NARAYANAN ACT /// Pakistan must stop cross-border terrorism in Jammu and Kashmir and other regions in India, and also put an end to hostile propoganda against India. /// END ACT /// Mr. Narayanan said Afghanistan is a threat to India's security interests. India alleges that Muslim mercenaries trained in Afghanistan and Pakistan are being sent to Kashmir to fuel the separatist insurgency there. The government says it will give defense preparedness its topmost priority, and the Indian military will be equipped with modern weapons. On the foreign policy front, the government wants to broaden relations with United States and improve ties with neighboring China. On the domestic front, the government outlined plans to give a fresh impetus to economic reforms that have slowed down in recent years. It is promising a "pro- development mind-set," and urgent steps to improve infrastructure, which also has been a stumbling block to economic growth. President Narayanan says the government wants to double the amount of foreign investment coming into India each year, to about 10-billion dollars annually. /// 2ND NARAYANAN ACT /// Foreign direct investments play a crucial role in rapid economic development, by bringing in modern technology and management practices. Government will review existing the F-D-I [foreign direct investment] regime in order to bring in greater transparency and cut delays in project implementation. /// END ACT /// The government has also promised social sector development, and says there will be greater focus on education and health care. On the political front, the government plans to bring in legislation proposing a fixed five-year term for parliament. India has faced political instability recently, with three general elections in as many years. The government also promises to bring in a bill to reserve one-third of seats in the lower house of parliament for women. Prime Minister Atal Behari Vajpayee's government was sworn into office earlier this month. It consists of more than 20 coalition partners, but it has a firm majority in Parliament, raising hopes that it will be able to implement its policies. (Signed) NEB/AP/WTW 25-Oct-1999 06:46 AM EDT (25-Oct-1999 1046 UTC) NNNN Source: Voice of America .