Financial sector reforms needed for faster growth: PM

PM-REFORMS

New Delhi, Nov 8 (PTI) Having decided to sell a portion
of government equity in select companies, Prime Minister of
India Manmohan Singh on Sunday said he would pursue financial
sector reforms to fund infrastructure development that would
in turn propel the economy.

The country had targeted to attract USD 500 billion in
investments in the five years till 2012 to fund infrastructure
development, but the global financial crisis last year put
paid to this hope.
However, with the economy showing signs of an upturn,
Singh today rekindled the infrastructure investment plans.
"We have an ambitious programme of investment in all the
key infrastructure sectors: Power, roads, ports, airports,
telecommunications, irrigation and urban infrastructure," he
told the India Economic Summit organised by the WEF and CII.
Stating that only a strong financial system can provide
the finances needed for development, he noted: "This opens up
a broad agenda for reform.
His agenda includes developing long-term debt markets and
to deepen corporate bond markets, which in turn calls for a
strong insurance and pension sub-sectors. Other reforms
needed, especially in insurance, involve legislative changes.
"We have taken initiatives in this area and will strive
to build the political consensus needed for these legislative
actions to be completed," the Prime Minister said.
His government has already cleared divestment of up to 10
per cent equity in listed PSUs, proceeds of which would be
ploughed into social sectors. MORE PTI TEAM
SDE


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