Davos: Ahead of the Budget, Planning
Commission Deputy Chairman Montek Singh Ahluwalia today said
the country should further liberalise its financial sector to
play a bigger role on the global landscape.
"Even when the industrialised countries appear to be
shrinking, we may well be expanding the scope of
liberalisation of the financial sector" he said while
addressing a session at the 40th annual meeting of the World
Economic Forum (WEF) here today.
"We have to persuade our population and educate them
about the advantages of expediting financial sector
liberalisation," he added.
Ahluwalia's statement comes at a time when the Finance
Minister is working out the parameters of his 2010-11 budget
which, besides tax proposals, will also include a statement
laying down the economic reforms programme of the Government.
The important pending financial sector reforms include
raising the foreign direct investment cap in the insurance
sector. The agenda of the Government also includes reforms of
the pension sector.
In case of the banking sector, the pending reforms
include providing greater operational freedom to foreign banks
and raising voting rights of overseas entities in private
sector banks.
Following the collapse of Lehman Brothers that triggered
the global financial meltdown in October 2008, many developed
countries have turned cautious and some even adopting
protectionist steps to safeguard their economies.
PTI
First Published: Friday, January 29, 2010, 19:35