New Delhi: Finance minister P Chidambaram, said yesterday that
a new comprehensive policy framework for the financial sector is being considered.
The new policy, which would cover banking, pension, insurance and capital
market, is expected to be ready by September. Addressing
the annual session of the Confederation of Indian Industry, the Chidambaram
sought industry''s support in formulating the policy. He urged industry to
hold dialogue with political parties, state governments, trading and exporting
communities and the banking sector to ensure that its views were taken into
account. Chidambaram
said policies in the financial sector were still evolving whereas the policy
matrix was more or less complete in manufacturing, trading, services exports
and taxation. "Once
the policy matrix for financial sector is complete, we must back it up with
appropriate legislation so that all uncertainties that surrounds the financial
sector reforms are put at rest in the first half of the current financial
year itself," he said. Making
out a case for outward-looking policies on foreign direct investment, foreign
institutional investment, tourism, services exports and remittances, Chidambaram
said this was required to ensure that inflows from these sources grew at a
pace that could balance the swelling trade deficit. "We have taken the
rising trade deficit in our stride thanks to remittances and invisibles. But
our exports must grow faster even though last year we had a staggering growth." "The
$30-billion trade deficit can be sustained only when there are matching inflows.
There must be corresponding increase in remittances,
invisibles and services exports. This would ensure that trade deficit does
not become an albatross around India''s neck," he said.
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