FM seeks allies’ support for consensus on Insurance Bill

MUMBAI: Finance minister Pranab Mukherjee is seeking support from other political parties to push through the Insurance Laws (Amendment) Bill 2008. “We have started talking to various stakeholders. In this case, the stakeholders are various political parties, because we do not have 272 members in the Congress party,” said Mr Mukherjee, speaking on the sidelines of an event in Mumbai.

“I have started talks with them and I hope there will be a broad consensus on this matter.” If amended, the new law will make it possible for foreign direct investment in this sector to go up from 26% to 49%. The Bill is, however, pending to be introduced in the Parliament since 2008 as the Left, the then allies, were strongly opposing the bill. Many potential foreign investors, including legendary investor Warren Buffet, are among those waiting for the bill to be cleared to bring in investments in this sector.

Earlier, delivering the Central Bank of India’s Sir Sorabji Pochkhanawala Memorial Lecture expressed his concerns that banking services has failed to penetrate throughout the country despite the government’s efforts for over 40 years. He underscored the need for policy makers and other stake holders to re-startegise policies to reach the unbanked sections of the country.

“The nationalisation of banks in 1969 gave boost to expansion of banking network in the country. However,the outcomes of these efforts are yet to show the desired results. Newer perspectives and approaches towards financial inclusion are the need of the hour. There is a case for the policy makers and other stake holders to re-strategise the financial policies that are meant to reach the unreached and the unbanked sections of our country,” he said.

‘Growth, Deficit Control on Track’

NEW DELHI: Finance Minister Pranab Mukherjee expects the GDP growth and fiscal deficit will be on track. The CSO has predicted the growth to be at 8.6 % this year. Mr Mukherjee who met with corporate groups in Mumbai at a function organised by Assocham said there are enough triggers that will give necessary steps for growth.

“GDP growth has been swift and broad based, tax revenue has grown and current account deficit is much lower than what it was thought,” said Mr Mukherjee . The FM has also promised the implementation of Goods and Services Tax or GST by next year.