The Hindu : National : FDI in mining, trade and pensions on the anvil

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Tuesday, Mar 01, 2005

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FDI in mining, trade and pensions on the anvil

By Our Special Correspondent

NEW DELHI, FEB. 28. While refraining from making any announcements on liberalising foreign direct investments, the Finance Minister, P. Chidambaram, today indicated that the mining, retail trade and pension sectors were areas where proposals were under consideration. "The Government will, after due consultation, come forward with suitable proposals," he said.

Presenting the budget proposals for 2005-6, he urged the MPs to take a "pragmatic view" of the FDI. He referred to the fact that China had received $500 billion of investment since it opened its economy in 1980, of which $60 billion came during the calendar year 2004. "Our own experience has been that the automobile, software, telecommunication and electronic sectors have benefited from FDI and assimilated themselves into the global production chain," he said, adding that there were opportunities also in other sectors like mining, trade and pensions.

He did announce, however, de-reservation of 108 items from the list of industries reserved for the small-scale sector. Among them, he said, were 30 items in the textile production category which were poised for rapid growth. In recent years, the approach to small industry had evolved and the sector was being treated as the small and medium enterprises (SME) sector. There was need for a new legislation to provide a supportive environment for such SMEs and the Small Scale Industries Ministries would introduce a Small and Medium Enterprises Development Bill in the current session of Parliament.

For manufacturers

In the manufacturing sector, he said a new scheme to revive and strengthen domestic industry would be launched to be called the "Manufacturing Competitiveness Programme". The National Manufacturing Competitiveness Council would work on the design of the scheme in consultation with industry, he said. Worldwide, it was manufacturing that had driven growth.

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