How Sensex-friendly reforms also serve inclusion

The latest round of reforms are, at first sight, far removed from the aam admi, but are vital for creating the pre-requisites of his inclusion into the globalised growth process. Here’s how:

1) Higher FDI cap in insurance & pension

Insurers urgently need money to grow their business and, at the same time, remain solvent.

2) To fund long-term liabilities, insurers need long-term assets, long-term essentially debt issued by infrastructure projects that provide low but steady returns.

3) These projects, basically, roads, power, telecom and irrigation are vital for fast growth and for that growth to be inclusive.

Roads: Roads integrate rural & urban economies. Expand opportunities and generate incomes.

Power: Daytime power will allow agro-processing industry to come up and shift workers from farming to higher productivity industry.