Reforms possible only with broad consensus: Pranab

A day after some UPA allies forced the government to defer amendment to the Insurance Act, Finance Minister Pranab Mukherjee today said in a federal structure with multi-party democracy reforms are possible only with broad consensus after dialogues and discussions.

"While some stakeholders might be desirous of fast-paced reform process, reforms are possible only with broad-based agreement after dialogue and discussion," he said in the Lok Sabha. "With a federal structure and vibrant multi-party democratic polity, reforms in India have been made possible through a process of dialogue and consensus with different stakeholders," he said. Yesterday, the government had postponed a decision relating to increasing the limit in foreign direct investment in the insurance sector, bowing to pressure from the Trinamool Congress and other allies.

"Irrespective of political differences, the central and state governments have worked together for furthering reforms. Thus while reforms in India may be gradual, it is sure and has larger democratic sanction," he said. A number of legislative measures or amendments are being taken up in this session of Parliament as part of financial sector reforms, he said. The Union Cabinet had approved yesterday a Bill to regulate the micro finance industry and bring micro lenders under the purview of the Reserve Bank. This has paved way for introduction of Micro Financial Sector Development and Regulation Bill in Parliament.