Washington October 12:
India has said its financial sector reforms were not a result of external influence, much less an attempt to appease the U.S. ahead of its President Barack Obama’s visit to India in November.
“We did not meet with anybody, we do feel that these reforms are necessary for the betterment of our economy, this is our own understanding. It is not linked with anybody’s visit,” Finance Minister Pranab Mukherjee told reporters after the conclusion of IMF-World Bank annual meeting here on Sunday.
In the Monsoon session of Parliament, India introduced a bill to overhaul its direct tax law, while legislation to liberalise pension and insurance sectors are pending. Mr. Pranab explained that the legislations on financial sector reforms were held up as the ruling UPA government does not have the requisite majority on the issue in Parliament.
“Why the legislations in certain areas are being held up, you are fully aware of it - Congress Party does not have the clear majority on the floor of the House to get the legislation signed. Legislations can’t be done only on the basis of intention, we require the required number - majority of the floor of the house we do not have 272 votes,” he said.
He said this lack of numerical strength in Parliament was holding up the passage of pension reforms and insurance bills, even as he refuted suggestions that there was external pressure on India to get the reforms through. “No question of pressure coming from any side... It is not a question of putting pressure long before the visit of President Obama,” he said.
He said it was in 2004 that the pension reforms bill was tabled in Parliament, but it could not be passed because there was no consensus. Pension reforms bill relate to giving statutory power to interim pension regulator, PFRDA, and opening up the sector to various other players, including FDI. Insurance bill relates to hiking a cap on FDI in the sector to 49 per cent in the private sector insurers from 26 per cent at present. President Obama is slated to visit India early next month.
“I had discussion with the (US) Secretary of State, Hillary Clinton. We discussed about the visit of the President, it was in general terms,” Mr. Pranab said. On inflation, which still prevails at over 8 per cent, with food articles getting costlier, he said constant vigil on price situation is being made and exuded confidence that the rate of price rise will come down to six per cent by this fiscal end.
India has said its financial sector reforms were not a result of external influence, much less an attempt to appease the U.S. ahead of its President Barack Obama’s visit to India in November.
“We did not meet with anybody, we do feel that these reforms are necessary for the betterment of our economy, this is our own understanding. It is not linked with anybody’s visit,” Finance Minister Pranab Mukherjee told reporters after the conclusion of IMF-World Bank annual meeting here on Sunday.
In the Monsoon session of Parliament, India introduced a bill to overhaul its direct tax law, while legislation to liberalise pension and insurance sectors are pending. Mr. Pranab explained that the legislations on financial sector reforms were held up as the ruling UPA government does not have the requisite majority on the issue in Parliament.
“Why the legislations in certain areas are being held up, you are fully aware of it - Congress Party does not have the clear majority on the floor of the House to get the legislation signed. Legislations can’t be done only on the basis of intention, we require the required number - majority of the floor of the house we do not have 272 votes,” he said.
He said this lack of numerical strength in Parliament was holding up the passage of pension reforms and insurance bills, even as he refuted suggestions that there was external pressure on India to get the reforms through. “No question of pressure coming from any side... It is not a question of putting pressure long before the visit of President Obama,” he said.
He said it was in 2004 that the pension reforms bill was tabled in Parliament, but it could not be passed because there was no consensus. Pension reforms bill relate to giving statutory power to interim pension regulator, PFRDA, and opening up the sector to various other players, including FDI. Insurance bill relates to hiking a cap on FDI in the sector to 49 per cent in the private sector insurers from 26 per cent at present. President Obama is slated to visit India early next month.
“I had discussion with the (US) Secretary of State, Hillary Clinton. We discussed about the visit of the President, it was in general terms,” Mr. Pranab said. On inflation, which still prevails at over 8 per cent, with food articles getting costlier, he said constant vigil on price situation is being made and exuded confidence that the rate of price rise will come down to six per cent by this fiscal end.
