Chidambaram backs Maran on scrapping of FIPB

Chidambaram underlined the need for revitalising the Foreign Export Promotion Council (FIPC) or creating a similar body. The finance minister regretted that the FIPC had failed to take off and added that the government would try to revive it or create similar advisory councils.

The minister recalled that the government had set up advisory councils for facilitating foreign investment, but the council failed to make any headway in that regard.

On FIPB, he said FIPB’s regulatory role could be scrutinised and the board might be transformed into a broad policy making body.

Referring to the economic reforms, the minister underlined the need for adopting the most efficient path of success, keeping in mind the mistakes committed by other South Asian nations, to emerge as a "strong, modern, open, growing and prosperous country."

Regarding the investment target of Rs 345 crore set for infrastructure development, he said India has the capability to absorb $ 10 billion of foreign equity every year. " Moreover, we envisage a bulk of the amount to come from domestic investors", the minister added.

The minister said the country has now to fashion its policies to push ahead reforms. "Our government bowed out of office after 500 greatly satisfying days and we do not need two governments in the next 1,000 days to take us ahead. Whichever government comes to power will push ahead reforms," the finance minister said. He admitted that the country was faced with problems in capital markets and infrastructure but felt they were surmountable.