India146;s next step should be to make Mumbai an IFC: Paulson

The biggest opportunity for India lies in Mumbai emerging as International Financial Centre, said US secretary of treasury Henry M Paulson at the Fortune Global Forum. Speaking at the two-day forum, Paulson was responding to the session moderator, Thomas Friedman NYT columnist on the question of opportunities and challenges for India. He said that India has made significant progress in its markets 8212; for instance, equity and insurance markets 8212; and now it needs to build infrastructure, create an investment climate and continue to relax regulation restrictions. 8220;In India, sectors which have been de-regulated like airlines, telecom and software are doing very well.8221;

Paulson8217;s response has revived the speculation made by the Percy Mistry-led High Powered Expert Committee on Mumbai as an IFC, submitted in April this year. Speaking to The Indian Express, a member of the HPEC agreed with Paulson and added that the next sector, which needs de-regulation, is the financial sector. 8220;The de-regulation of financial sector and making Mumbai an international financial centre will have massive impact on being able to fund India8217;s infrastructure needs,8221; he said.

Chalking out a time frame for such a possibility in near future, he said, 8220;if there is political will, in one or two years, Mumbai can become an IFC. A feasible strategy can be worked out to put into action 58 guidelines as envisaged by the high powered committee8217;s report.8221;