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Updated: November 29, 2013 17:25 IST

Capital market, financial sector reforms on the anvil: Chidambaram

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Finance Minister P.Chidambaram during an interaction with media in New Delhi on the Nov. 1, 2013. A file photo: Rajeev Bhatt
The Hindu Finance Minister P.Chidambaram during an interaction with media in New Delhi on the Nov. 1, 2013. A file photo: Rajeev Bhatt

Exuding confidence that growth rate will climb to 6 per cent next year, Finance Minister P Chidambaram on Friday said government will liberalise capital markets and financial sector in the next six months to help economy return to high growth trajectory.

Unveiling UPA government’s agenda for the remaining six months of its second term, he said liberalising natural gas pricing as well as clearing impediments facing projects figure high on priority.

“I have a whole list of things to do on my table and follow it everyday. We have to liberalise capital markets, we have to liberalise financial sector, we have to fix the price of gas and oil. We have tried to fix the issues in coal sector so that more coal is produced. We will have more meetings of CCI to unblock stalled projects.

“There are whole series of things across the spectrum that needs to be done and we will do it, just as we have done something everyday for last 16 months,” he said at the India Economic Conclave organised by ET Now.

Stating that Indian economy was going through stress like the economies world over, the Finance Minister said economic growth will begin to pick up from next fiscal, rising to 8 per cent in two years time.

“I am absolutely confident that we can overcome this period of stress and return to high growth path. In 2014-15, our growth will be close to 6 per cent. In 2015-16, it will be close to 7 per cent and a year after we will be back to high growth rate of 8 per cent,” he said.

The Indian economy grew at a decade’s low rate of 5 per cent in 2012-13. In the first quarter of current fiscal the growth was at a four year low of 4.4 per cent.

“The first quarter growth of 4.4 per cent was disappointing.... I am totally confident that we must not take any misstep. We should continue to walk the path of fiscal prudence and fiscal discipline,” he said.

Several steps have been taken by the government to speed up the process of government clearances for industry, build an environment more conducive to trade and industry and increase investment in the economy.

The Cabinet Committee on Investment (CCI), headed by Prime Minister Manmohan Singh, has cleared 209 projects worth over Rs 3.84 lakh crore.

Nothing that perception of investors about India is changing, Mr. Chidambaram said the measures taken by government in fast tracking investment decisions have prepared the pitch for higher growth.

“We will continue to work till last day of this government. I can pledge on behalf of my government that we will work everyday until the last day of the term of this government. Whether we have taken right decisions, will be known as the (elections) results come in,” he said.

Noting that industry needs to be patient in order to see the results of government decision, Mr. Chidambaram said, “If you are patient and if you continue to do the right thing, you will find the path to climb back to high growth”.

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Dear Finance Minister, Please go ahead with your economic reforms. We
are watching you any meaningful reform. You are bringing DTC to
simplify the Income Tax Act but without telling which section of the
Act has been simplified and is the simplified solution offered in the
DTC? Secondly, we have seen Bhartiya Mahil Bank to provide finance to
women but already there are Sarkari Banks in every town to provide any
person including a woman who wishes to start a new business, trade or
a tiny, small or big business but they are not coming. Then what was
the purpose of setting up a new sarkari bank "Bhartiya Mahila Bank" is
not being digested as a reform?

Any how go ahead. Best of luck.

from:  SC Aggarwal
Posted on: Dec 1, 2013 at 11:48 IST

But time and again, without anybody's requested he had claimed earlier that the country will bounce back, when he knew it already that because of the bad and worse govt policies, the economy is coming down (not for politicians, they are bulking their pockets anyways), can we bestow him with the Bharat Ratna for this very finding of "No Quick Fix" remarks, what you say folks? If he cant keep the dignity of his portfolio as a minister, he should either keep mum or say what should be said.

from:  Umesh
Posted on: Nov 29, 2013 at 16:54 IST
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