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Measured steps: Chidambaram

Says U.S. companies seemed to have seen the opportunities ahead

WASHINGTON: : India on Saturday said it would open up its financial sector further, but this would happen gradually after putting in place appropriate laws and appointing regulators.

"It is our intention to move forward, but at every step the watchword will be caution and placing suitable instruments to prevent financial shocks,'' Finance Minister P. Chidambaram said in a lecture at Yale University.

"We have taken measured steps in banking, insurance, capital markets, securities markets and the debt markets,'' he said, adding that the U.S. banks, insurance companies and other financial intermediaries seemed to have realised the opportunities that lie ahead and accepted the wisdom of India's policy to "hasten slowly." There has been considerable interest on the part of the U.S. corporations in the Indian financial sector.

India was now coming to a point where its contribution to the world economic growth would be significant with a GDP of nearly $800 billions and each 10 per cent rise in its GDP would contribute $80 billions to world output. The measurement of Economic Freedom by the Fraser Institute of Canada showed India has improved from a score of 4.9 in 1990 to 6.4 in 2002. — PTI

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Measured steps: Chidambaram

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