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Govt making efforts for economic turnaround: PC

Posted on Dec 14, 09:09PM | IBNS

Union Finance Minister P Chidambaram on Friday said the government is making every effort for the turnaround of the economy and creating investor friendly climate.

"Government has been making every effort to turn the economy around and create a more investor-friendly climate. We have taken a number of steps to encourage foreign direct investment, including allowing, recently, FDI in multi-brand retail, civil aviation and some broadcasting services," Chidambaram said while addressing at the Delhi Economics Conclave here.

"Against considerable opposition, we also raised the prices of certain petroleum products in order to contain the subsidy bill and to discourage over-consumption," he said.

Speaking on the Direct Benefit Transfer Scheme, the Finance Minister said: " We have initiated measures to move all cash benefits to a technology-enabled platform so that the benefits are transferred directly to the bank accounts of the beneficiaries; we expect that the Direct Benefit Transfer Scheme will be a game-changer and will eliminate nearly all leakages, duplication and falsification and bring a greater degree of transparency and efficiency."

"We are also addressing some tax issues that have created uncertainty in the minds of the investors and we have made it clear that our objective is to have clarity in tax laws, a stable tax regime, a non-adversarial tax administration, a fair mechanism for dispute resolution, and an independent judiciary," he said.

"Yesterday, the Cabinet took some important decisions. Among them was a decision to set up the Cabinet Committee on Investment to quicken the pace of decision making in critical infrastructure projects," Chidambaram said.

He said the Cabinet also approved a landmark draft Bill on Land Acquisition and a new investment policy for urea plants.

Chidambaram said external sector vulnerabilities are affecting the Indian economy because of the rapid globalization of the economy.

The Finance Minister, however, cautioned and said: "It is too early to say whether the measures have begun to bear fruit, although it is our expectation that they will do so.