Major reforms are unlikely to happen in next 6 to 9 mths: Aziz

NEW DELHI: Key reforms are likely to take a back seat in the next 6 to 9 months, Principal Economic Advisor in the Finance Ministry Jahangir Aziz said on Friday.

"I don't see major reforms happening in the next 6 to 9 months," Aziz said at a seminar here.

Finance Minister P Chidambaram had yesterday said he saw no reasons to halt financial reforms "having regard to the context, having regard to international situation and having regard to our ability to keep regulations one step ahead of innovation...."

Some of the key reforms in banking, insurance and pension are pending due to persistent opposition.

A group of ministers on insurance headed by External Affairs Minister Pranab Mukherjee met earlier this month and is believed to have cleared amendments in the Insurance Act.

After the meeting, Finance Minister P Chidambaram had said, "We will go to the Cabinet now."

Speaking on the impediments to growth, Aziz said there could be a slowdown in the exports of software and services because of uncertainty in global markets. Besides, the uncertainty in agriculture sector could be a concern, he said.

Indian economy is unlikely to see a faster growth rate in the rest three quarters than 7.9 per cent registered during the first quarter of current fiscal.

"In the first quarter we grew by 7.9 per cent. But I am not sure that in the rest of quarters we will be growing, in the current environment, faster than we did in the first quarter," he said.

Asked about the impact of the US financial crisis he said, if the world is slowing down there would be some impact on India as well.