Govt committed to sell-off process: FM

NEW DELHI: Asserting that eight per cent GDP growth was achievable , Finance Minister Jaswant Singh on Friday said the government was committed to carry forward the disinvestment process and remove the impediments to the inflow of foreign direct investment. We are committed to disinvestment and it is an integral part of the reform process. There is no ambiguity in our policies, Singh told a joint press conference with US Treasury Secretary Paul O''Neill after a Cabinet-level meeting of the Indo-US Economic and Financial Forum. Admitting that there were impediments to freer flow of FDI, Singh said it was due to rigidities and attitude in the system, which the government was committed to removing. If you ask me, whether we have removed all obstacles? I will say, no. We have to streamline the process of economic reforms in India, he said. The Finance Minister, however, said the difference between the potential and the actual FDI flow was huge. FDI accretion in India is only a fraction of the potential, he said. Maintaining that the things are already looking up , Singh said the economy was projected to grow by 5.5 to six per cent despite most adverse conditions of drought, global slowdown, uncertainties in the gulf and stand-off with the neighbour. Asked whether the country could achieve this, Singh said, Eight per cent growth is what we believe is achievable with some amount of favourable conditions. Sharing Singh''s views, O''Neill said, â€œI believe in the minister and I am impressed by the rural development especially women empowerment and micro credit system.â€� Elaborating on the strong economic fundamentals, Singh said the industrial output was growing by six per cent, exports posted double digit growth leading to a current account surplus besides burgeoning foreign exchange reserves of over $65 billion, which is growing at $500 million a week. The Indo-US bilateral discussions covered wide ranging issues including ways to strengthen financial markets to promote growth with special emphasis on enhancing private access to capital to support private sector development and accelerate growth in the banking and financial sectors. Both countries agreed on the need to promote trade and services in both traditional and non-traditional areas. The vulnerability of financial system to abuse for terrorist purposes especially through the use of non-traditional remittance system figured prominently in the discussion. India, which has been on the receiving end for almost two decades, shared its experience and both sides emphasised the need for continued international efforts to establish standard promoted by the financial task force and Egmont Group. Both countries pledged to continue to the fight against money laundering and the financing of terror and to enhance mutual cooperation. Substantiating this view O''Neill said, I think we had success in whatever we are trying to do together. In some countries hawala is permitted and in India it is against the law. Quite clearly, difference between the circumstances in India and other countries in my view is that India is doing everything it can to enforce the law . O''Neill said, Work is going on everywhere to enact the law to strengthen the position of authorities to deal with terrorism.â€� In this direction, he said, We have agreed together to provide technical assistance.â€� On agriculture subsidies, O'' Neill said President George Bush has already announced his intention to work bilaterally to effectively remove agriculture subsidies. He said this issue was also broached during the WTO meeting at Doha. He said the problems of the countries in this regard should be tackled on an equal footing . Earlier, UK Treasury Secretary Paul Boateng, who is also here for the G-20 meeting, told reporters that the meeting provides a timely opportunity for representatives of emerging and advanced economies to review the key issues facing the world economy. On terror funding, he said, We are going to use the G-20 meeting to evolve a mechanism to combat financing of terrorism and ensure we are one step ahead of terrorists.â€� He said the law and banking systems are ready to ensure that supplies to terrorists are cut out. We are cooperating in a way that was never before , he said, adding all markets including the financial and commodities market need to be monitored in this connection. He said there was no room for complacency and â€œwe are doing whatever is required to contain terrorism .

Govt committed to sell-off process: FM

Asserting that eight per cent GDP growth was "achievable", Finance Minister Jaswant Singh on Friday said the government was committed to carry forward the disinvestment process and remove the impediments to the inflow of foreign direct investment.

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