labels: confederation of indian industry, economy - general
Mumbai: An ideal global financial centre news
Our Banking Bureau
09 April 2002
Mumbai: The Confederation of Indian Industry (CII) has proposed an idea to develop Mumbai as an international financial centre.

At a seminar to discuss the way forward in connection with the regulatory, legal and infrastructure policies in this regard, CII has suggested that Mumbai is an ideal place for an international financial centre due to the presence of a large number of financial market players, like banks, insurance companies, stock exchanges and capital market intermediaries.

Availability of high-quality support lawyers and accountants, and the high-level connectivity to international destinations also work in Mumbais favour, say CII officials. But the confederation has said that to make Mumbai a successful model for an international financial centre changes have to be made in many regulatory policies and procedures.

Speaking at the seminar, Maharashtra Chief Minister Vilasrao Deshmukh said: With the creation of an international or offshore financial centre, Mumbai can attract large funds that can be serviced by the human resources and infrastructure already available here.

A CII taskforce - a core group comprising representatives from the state government, the Reserve Bank of India (RBI) and other organisations - has been set up to work out the details. Whatever model proposed will require a suitable dispensation from the central government and the RBI, Deshmukh said.

The proposals will have to address issues like money laundering, taxation and banking regulations. Hence, the centre and the RBI might prefer a gradual approach, he said. However, a gradual approach might leave India lagging behind in the world economic scene. In developing an international or offshore financial centre here, we have international experiences to draw on.

Deshmukh said the investment climate in Maharashtra has improved. The foreign direct investment (FDI) that Maharashtra attracted in the last two-and-a-half years is almost equal to the FDI approved in the previous eight years.

There is a new stress on the creation of world-class infrastructure in partnership with the private sector. We want to have an Act to provide a transparent framework for public-private partnerships in infrastructure so that it will add confidence among investors, he said.


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Mumbai: An ideal global financial centre