The ministry needs to initiate technical work on redrafting financial legislation, with a focus on the Financial Services Modernisation Act envisaged in the MIFC report.
Convertibility in 18-24 months appears daunting, but there is ample avenue for incremental progress. In parallel, an expert committee needs to be set up to draft the replacement of FEMA and to fully work out the institutional nuts and bolts of convertibility.
In summary, the MIFC report is the game plan for India’s globalisation. Every element of this report is required to accelerate growth. It is time for us to do for finance what was done, with great success, for the product markets.
The writer headed the task force on tax reforms and is chairman, India Development Foundation. This article is based on his comments at the CII conference in Mumbai on the Percy Mistry committee report
Epaper
Newsletter
Stocks
Weather
Horoscope
