Chidambaram promises more reforms

Announcing further liberalisation of FII investment norms, Finance Minister P Chidambaram today said the government is "steadily and surely" working on next generation of reforms to put the economy back on high growth path.

Addressing the National Editors Conference here, he said with liberalisation of FDI and other measures, the government has travelled considerable distance on the road to fiscal consolidation and reforms.

In further liberalisation of norms for investment by Foreign Institutional Investors (FIIs) in government securities and corporate bonds, he said norms have been rationalised. "There were a number of sub divisions and in order to rationalise, it is proposed to merge the existing sub limits and create only two broad categories," he said.

One category of basket, he said, will consist of government securities of USD 25 billion  and the second basket will consist of all corporate bonds of USD 51 billion.

"Therefore from April 1, there will be two baskets, one of USD 25 billion for government securities and (the other) of USD 51 billion for all corporate bonds," he said. Promising more reforms, Chidambaram said that "we are steadily and surely working on next generation of reforms".

The recent economic reforms include liberalisation of foreign direct investment (FDI) norms in multi-brand retail and aviation, partial deregulation of diesel prices and caping supply of subsidised LPG.

Referring to the Food Security Bill, Chidambaram expressed confidence Parliament will soon pass it. "I am confident it (Food Security Bill) will be passed soon by Parliament, possibly in the Budget Session itself," he said.