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Journalism of Courage
Maintaining that the UPA government is ‘‘committed to the process of reforms,’’ Finance Minister P Chidambaram has told investors in New York that a decision on raising the cap on foreign direct investment (FDI) in domestic airlines is expected to be taken this month and in the ‘‘near term’’ in telecom.
Action in the case of ‘‘civil aviation, that is, domestic airlines, we will be able to do it within this month, in telecom in the near term but in insurance, I said, it would require parliamentary approval,’’ he said in an interaction after addressing more than 500 investors.
The question whether Left parties would be able to slow down reforms came up repeatedly in the discussion that followed his presentation of India’s economic profile and his statement that the country can absorb huge amounts — 150 billion dollars — of foreign investments.
‘‘Working a coalition is a learning on the job process. We are learning on the job and they (Left parties) are also learning to work with us, even while remaining outside the government,’’ he said.
To a question on foreign investment in media, he told the investors’ forum that a ministerial committee would examine the issue.
‘‘I said it is our intention to raise the cap in civil aviation, telecommunication and insurance. I said in civil aviation, domestic airlines the intention is to raise the cap from 40 to 49 per cent, in telecom from 49 to 74 per cent and in insurance from 26 to 49 per cent.’’
He also told foreign institutional and other investors that India provides a lucrative market for their investments and assured them that the government would remove any procedural hurdles that they might face.
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Influence used to get
around policies: Tata |
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NEW YORK : Tata group chairman Ratan Tata told the investors conference that ‘‘some business people’’ use their influence in a way that the government’s policies of liberalisation are not implemented. ‘‘They think liberalisation is good only for them.’’ He did not name anyone.. Story continues below this ad |
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Stressing the importance of foreign investment, he said it is imperative for India as it needs a growth rate of 7 per cent if it is to find jobs for millions of new entrants every year.
‘‘Let me tell you categorically that my country remains committed to the process of reform, and that this process will go forward, we will try to go even faster,’’ he said.
Chidambaram, who had meetings with several investors during the day, told reporters later that they were ‘‘uniformly enthusiastic and responsive.’’
‘‘What I saw today was interest mixed with curiosity about the policies of the new government.’’ He explained the policies and they seem to appreciate them.
The investors, he said, did not raise any major concerns though some issues of procedure came up.
He told the investment forum that the confidence of foreign institutional investors was increasing. He said in 2002, only 51 came but in the first few months of the current fiscal year, 72 had already come. — (Press Trust of India)
