FDI inflow to improve after WB observation, says Sinha

In its latest global development finance report, World Bank had observed that despite a substantial fall in overall foreign direct investment flow to South-East Asia, investment flows to India had soared. This, it said, had happened despite concerns over the Pokhran nucleartests.

On the launching of the second generation reforms, Sinha said he had committed at the time of the budget presentation that he would come out with a paper on it before the budget session of the Parliament ends on May 14. Asked what would be the thrust of his second generation reforms, Sinha said "it will be to put a time frame to the reform programme so that a road map is clearly defined."

The thrust will also be to go for "standards and norms" which are international, he said. The finance minister said he would also attempt to cover more areas and bring in new areas within the ambit of reforms. Expressing confidence that the Finance Bill which has for the first time sought to rationalise the indirect tax structure as part of the reform process would be passed easily, Sinha said he did not see any reason why the liberalisation process would get derailed.