Union finance minister P. Chidambaram on Monday said he would meet the leaders of the BJP and other parties before Parliament’s Winter Session to seek their support to raise the FDI cap in insurance to 49 per cent from 26 per cent as the sector requires a huge amount of capital.
On the controversy surrounding retrospective amendment of income-tax, he said for any action the government will not wait for the Budget. “Once we take a view (on the Shome Committee report), I see no reason why we should wait for the Budget Session. We should move whatever changes have to be brought about in Parliament as early as possible,” said Mr Chidambaram.
The finance minister said since the GDP target of 7.6 per cent was fixed in the Budget for the current fiscal global developments had turned more adverse. “We will still try to work towards 7.6 per cent but, if we fall short of 7.6 per cent, we would be still four times the growth rate of advanced economies,” said Mr Chidambaram. The finance minister said he expects growth to be better than 5.5 per cent in the remaining quarters. “There is no reason why it should stagnate at 5.5 per cent for all four quarters,” said Mr Chidambaram. The finance minister said a tight money policy dampened investment as well as growth, particularly in the industrial sector.
However, Mr Chidambaram said he doesn’t think that Indian business conditions are deteriorating. “Indian businessmen are in wait and watch mode, but in recent weeks I have got the impression that they are preparing to start the race ... start running,” he said.