PM-REFORMS TWO LAST

"We now hope to see faster progress in sale of a portion
of Government shareholding in the domestic market and issue of
fresh equities in respect of the selected companies," Singh
said, adding that "We need to improve futures markets for
better price discovery and regulation."

Disinvestment and speculation in futures market had been
contentious issues in the United Progressive Alliance (UPA)
government's first term, when Left allies forced it to put
divestment on hold and freeze futures trading in staple food
items.
Singh said return to high growth requires work in many
directions. "Our strategy therefore must aim at sustaining a
high rate of growth on the strength of strong domestic demand.
We seek to achieve this through a large increase in investment
in infrastructure."
He noted with comfort that domestic savings rate is now
as high as 35 per cent of GDP, but underlined the need for
attracting more Foreign Direct Investments.
Singh said the country's policy will be guided by the
desire to make India even more attractive for FDI. "We are
particularly keen to rationalize and simplify procedures so as
to create an investor friendly environment."
Although FDI is freely allowed under the automatic route
in nearly all areas of industry and also services, it is a
strict no in multi-brand retail, which is largely unorganised
in the country.
"All these issues will be addressed through gradual but
steady progress in financial sector reforms to make the sector
more competitive while ensuring an efficient regulatory and
oversight system," he said. PTI TEAM
SDE


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