Promising more reforms and to address issues of concern to the economy,Finance Minister P Chidambaram said Saturday that there is a need to re-energise the capital markets and bring investors in.
The government,which has announced a series of reforms,will identify the steps to achieve this,Chidambaram said after meeting regulators and industry representatives on his first visit to Mumbai after returning as finance minister.
Speaking to reporters after meeting the RBI Governor and the SEBI board,among others,Chidambaram expressed confidence that the moves to raise the FDI cap in insurance and allow FDI in pension funds would secure Parliaments approval.
There is a difference of opinion on one clause relating to the issue of 49 per cent FDI in insurance. I intend to meet with the leaders of opposition and convince them, he said,adding that the economic situation is still very challenging.
The government is committed to a well regulated financial market,promoting investments,helping channelise savings into financial instruments,in helping entrepreneurs raise capital and raising funds for projects… Chidambaram said.
The steps that we have taken will indeed cause a small rise in inflation but in about 6-8 weeks and thereafter inflation will come down, Chidambaram said.