Discussions on to further liberalise FDI policy: Pranab

"Discussions are underway to further liberalise the FDI (foreign direct investment) policy," he said at the annual conference of chief commissioners and directors general of Central Board of Excise and Customs (CBEC) here.

He said with an aim to make the FDI policy user friendly, all prior regulations and guidelines have been consolidated into an comprehensive document. The document is reviewed every six months.

Mukherjee's statement comes within weeks of an Inter-ministerial Group (IMG) headed by Chief Economic Advisor Kaushik Basu recommending to the government opening up the multi-brand retail sector for FDI to tame inflation.

The IMG constituted in February by Prime Minister Manmohan Singh had favoured opening of the sector in a calibrated manner.

Last July, the industry department had initiated discussions on opening the sector for FDI.
The share of organised retail in the total retail trade happens to be just over 4 per cent in India. The unorganised retail sector employs about 33 million people.

About the financial sector reforms, Mukherjee said, "We are now in the process of deepening policy reforms in the financial sector and addressing gaps in the overall economic regulatory architecture".

A Financial Sector Legislative Reforms Commission has been set up to re-write the financial sector law and bring them in harmony with the new liberalised environment in the country and in keeping with the best practices, the minister said.

About entry of new players in the banking sector, he said that RBI is in the process of issuing additional banking licenses to private sector players.