P Chidambaram announces more reforms to boost growth

Announcing further liberalisation of FII investment norms, finance minister P Chidambaram on Saturday 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, he said that with liberalisation of FDI and other measures, the government has traversed considerable lengths to ensure fiscal consolidation with reforms.

In a further liberalisation of norms for investment by FIIs in government securities and corporate bonds, he announced that the 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 will consist of government securities of USD 25 billion and a second 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 that Parliament will soon pass it. "I am confident it (Food Security Bill) will be passed by Parliament soon probably in the Budget Session itself," he said.