FDI rules to be further liberalised: Mukherjee
04 Mar 2011
India is in talks to further liberalise its foreign direct investment (FDI) rules as it looks outwards for funding key sectors and overhauling its infrastructure, finance minister Pranab Mukherjee said today.
India, the third-largest Asian economy, is making slow progress in opening up sectors such as retail, insurance and infrastructure, resulting in a sharp fall in FDI inflows into the country during this financial year.
Foreign direct investment is seen as crucial to sustaining the country's rapid growth.
The government, last month, warned that the economy would slow down further straining balance of payments if reforms were not undertaken to do away with regulatory barriers that deter inflows.
Speaking at a meeting of the Institute of International Finance, Mukherjee said discussions were also underway to liberalise the FDI policy.
The much talked about entry of major global players into the country's retail sector is expected to reduce the stubbornly high inflation.
India's creaking infrastructure is also viewed by many as an impediment to double-digit GDP growth.
