Finance Minister P. Chidambaram has assured “a number of decisions” for encouraging more investments in mutual funds and insurance.
At the same time, the Government intends to prepare short-term and medium-term measures for reviving manufacturing and exports. Similarly, the Government will not hesitate in taking decisions to address problems in the infrastructure sectors, the Finance Minister said.
Addressing a press conference, Chidambaram said, “Both the mutual fund industry and the insurance sector have turned sluggish. In the next few weeks, we will announce a number of decisions to attract more people to invest in mutual funds, insurance policies and other well-designed instruments”
Investment sentiments
According to him, “investment is an act of faith, it is a must to remove any apprehension or distrust in the minds of investors.”
The Government will improve communication of policies to potential investors. The aim will be to remove the perceived difficulties in “doing business in India”, including fears about undue regulatory burden or regulatory over-reach, he stated.
Similarly, domestic companies, especially public sector enterprises, which have large cash balances, will be encouraged to restart investment. Proposals pending with the Foreign Investment Promotion Board will be processed and decisions taken expeditiously.
Infrastructure growth
The Government has already announced an investment tracking system for projects with an outlay of Rs 1,000 crore or more.
“The Prime Minister has set specific targets for key infrastructure sectors. We will review the progress of each of these projects, periodically, in the Cabinet Committee on Economic Affairs and remove the bottlenecks to quicker implementation of the projects,” he assured.
Drought like situation
To face the drought like situation in various States, the Rural Employment Guarantee Programme (MGNREGA) and other schemes will be converged. Contingency plans are in place to supply drinking water and fodder and to help farmers replant alternative crops.
“We must seize the opportunity to build durable assets that will provide employment to the poor as well as help in drought-proofing agriculture in the affected districts,” he said.
Shishir.sinha@thehindu.co.in