No big bang opening up of FDI: Maran

NEW DELHI: Commerce & industry minister Murasoli Maran said today that ''big bang'' opening up of foreign direct investment was not on the cards for the time being.
This throws cold water on the calculation that the government would make bold moves on liberalising FDI to make up for the setback on the disinvestment front and maintain the reform momentum.
Calibrated liberalisation of the FDI policy is the practical approach as employment generation and political sensibilities have to be kept in mind, he told the ET in an exclusive conversation.
"We know what is desirable but we can do only what is possible. We have to work out the best solutions in the national interest," Mr Maran said.
The clear view is that ''big bang'' FDI liberalisation is not considered suitable for the Indian economy at this juncture. This runs counter to the recommendations of the Planning Commission report on FDI, prepared by a steering group headed by Mr N K Singh, that has recommended significant liberalisation of the FDI regime.
An informal meeting of the group of ministers on FDI is slated to take place on Thursday to consider the roadmap for further opening up of FDI inflows.
The meeting, likely to be attended by finance minister Jaswant Singh and Mr Maran, could be brief, confined to fixing the format in which available inputs on FDI liberalisation would be considered.
Mr Maran said that the N K Singh report would be considered along with similar reports from McKinsey, Boston Consulting, AT Kearney and Prof Jeffrey Sachs.