Agencies/New Delhi
Finance Minister P Chidambaram said yesterday that the government was preparing new economic reforms as it focuses on kick-starting investment in the sharply slowing economy.
Traders cover their mouths with black cloth and handcuff themselves protesting against the
government’s decision to allow Foreign Direct investment (FDI) in the retail market during a rally in New Delhi yesterday
After years of policy logjam and corruption allegations, Prime Minister Manmohan Singh’s administration burst into life two weeks ago when it announced a sudden blitz of measures to open up the economy and cut subsidies.
Speaking after a meeting of leaders in the ruling United Progressive Alliance coalition, Chidambaram stressed that more changes were in the pipeline.
“The prime minister underlined the need for a number of measures that will ensure that there is no volatility in the rupee and that investment will continue to flow into India as well as stimulate domestic investors,” he said.
“The need to do more reforms was discussed. Specific measures will come before the cabinet.”
“There was general satisfaction that many of the steps taken by the government, although some of them would put a burden on the people, have been welcomed by stakeholders as necessary and unavoidable,” he said.
Reports say the government is preparing to raise the bar for foreign investment in Indian insurance companies to 49% following recent moves to allow foreign direct investment in retail, airlines and broadcasting.
The cabinet is also said to be discussing a long-stalled and highly controversial land acquisition bill, which would aim to overhaul colonial-era laws governing the purchase of agricultural land for industrial purposes.