Arab Today, arab today india\s pm forges ahead with reforms
Last Updated : GMT 19:23:21
Arab Today, arab today
Arab Today, arab today

India\'s PM forges ahead with reforms

Arab Today, arab today

Arab Today, arab today India\'s PM forges ahead with reforms

New Delhi - AFP

India\'s embattled Prime Minister Manmohan Singh pushed ahead on Thursday with his make-or-break reform agenda as the government prepared to approve the latest batch of measures to open up the economy. Despite fierce resistance from opposition parties who are threatening to bring down the coalition in the next parliamentary session, Singh has signalled he is intent on more moves aimed at reviving economic sentiment. At a cabinet meeting later Thursday, the greenlight will be given for foreign direct investment (FDI) in the insurance and pensions sectors following similar moves for the aviation, broadcasting and retail industries last month. \"Measures like opening the pension sector to foreign investment and raising the FDI cap in insurance to 49 percent will be announced,\" a finance ministry official told AFP on Wednesday on condition of anonymity. Singh and his reformist new finance minister, P. Chidambaram, have stressed the need to encourage foreign and domestic investment to get India\'s economy moving again after a slump in GDP growth and worries about the budget deficit. \"The government has to take a number of decisions. As we take these decisions it will be clear that we are on the reform path and we will continue on that path,\" Chidambaram told the BBC in an interview broadcast on Wednesday. \"I think we will return to 9.0 percent growth once we address certain fundamental constraints.\" Other measures to be announced after the cabinet meeting at 04:30 pm (1100 GMT) include the setting up of a national investment board. In early afternoon trading on the Bombay Stock Exchange, stocks were at a 15-month high, up 1.06 percent at 19,069.56 points, while the rupee strengthened to its strongest in five-and-a-half months at 51.79 dollars.Singh, as well as his political boss Sonia Gandhi, the head of the ruling Congress party, face a broad coalition of opposing forces from political parties hostile to foreign companies to trade unions worried about job losses. Furthermore, the ruling coalition dominated by the left-leaning Congress is now a minority in parliament, having lost an ally who quit over the sensitive issue of allowing foreign supermarkets into the retail sector. The proposed foreign direct investment changes -- raising the cap to 49 percent in insurance and allowing foreign ownership of up to 26 percent in pensions companies -- must be approved by parliament. The leader of former coalition member Trinamool Congress, Mamata Banerjee, threatened on Monday to bring a no-confidence motion against the government which could lead to elections before their scheduled date in 2014. For the time being, however, Singh has succeeded in changing the mood in India after years of criticism of his ponderous policy-making and a string of corruption scandals that sapped the government\'s energy. The most recent scandal -- over the allocation of lucrative coal mining rights to private companies in a process that \"lacked transparency and objectivity\" according to the national auditor -- has slipped from the headlines. \"Instead of giving good quality, clean governance, they are introducing new \'big bang\' things that have a visible PR impact,\" Subhash Agrawal, the head of think-tank India Focus, told AFP. He added that the Congress party, traditionally focused on the rural poor, was now targeting the emerging middle classes which were \"slipping away\" amid frustration over the mishandling of the economy. The reformist 80-year-old Singh is seen as having won a struggle within his party on economic policy by convincing the more left-leaning Sonia Gandhi of the urgent need for economic growth in order to fund more welfare spending. India\'s growth is bumping along at around five percent -- its slowest pace in three years -- and ratings agency Standard and Poor\'s warned in June that it could lose its investment-grade rating. \"It is a huge gamble by the Congress,\" Neerja Chowdhury, a political commentator in New Delhi, told AFP. \"What goes in Singh\'s favour is the support of his own party.\" Some economists have warned however that opening up to foreign direct investment is not a panacea for India\'s problems, with labour market reform, improvements in infrastructure and better governance needed more urgently.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today india\s pm forges ahead with reforms Arab Today, arab today india\s pm forges ahead with reforms

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today india\s pm forges ahead with reforms Arab Today, arab today india\s pm forges ahead with reforms

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Egypt tourism revival steady but slow

GMT 16:04 2017 Tuesday ,19 September

Egypt tourism revival steady but slow
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today 600,000 children may flee to Bangladesh

GMT 06:49 2017 Monday ,18 September

600,000 children may flee to Bangladesh
Arab Today, arab today Equifax executives step down

GMT 16:16 2017 Saturday ,16 September

Equifax executives step down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today 5,000 'Dieselgate' deaths in Europe per year

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Renault-Nissan to launch

GMT 10:44 2017 Saturday ,16 September

Renault-Nissan to launch
Arab Today, arab today Eman Al Assy receives three offers

GMT 06:31 2017 Saturday ,16 September

Eman Al Assy receives three offers
Arab Today, arab today 'Severe' Typhoon Doksuri pounds Vietnam

GMT 15:49 2017 Friday ,15 September

'Severe' Typhoon Doksuri pounds Vietnam

GMT 11:10 2017 Friday ,15 September

Fadl Shaker retreats from surrendering himself

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 10:25 2017 Thursday ,14 September

Greece fumbled oil spill response

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:45 2017 Sunday ,17 September

France's hurricane-hit St Martin

GMT 21:57 2017 Sunday ,17 September

Russia and Iraq restore air travel

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:56 2017 Friday ,15 September

Apple's grand plan in Ireland held up by a forest

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday