Next wave of reforms must for India to grow: Geithner

Mukherjee,on his part,said reforms was a continuous process. “The more you reform,there is the need for additional reform,” he said,adding that the UPA government was committed to the process. Discussions were underway to build consensus on further liberalisation of the FDI policy in retail and defence sector,he noted.

He,however,skipped any mention of FDI in insurance. Notably,the Irda chairman was missing in the FM’s delegation which included the heads of all the financial sector regulators — RBI,Sebi and FMC Mukherjee and Geithner and senior officials from India and the US are scheduled to have their annual dialogue on Tuesday.

“India’s economic reforms have contributed to the Indian growth story….Though the global financial crisis of 2008 lowered the GDP growth rate to 6.8 per cent in 2008-09,the Indian economy rallied back with an 8 per cent growth in 2009-10,” the finance minister said at the conference organised jointly by the Confederation of Indian Industry and Brookings Institution.

At a time when runaway inflation and a tight monetary policy has eroded investor confidence. Mukherjee is trying hard to pitch the India growth story to American investors.

Calling on the US business community to form strategic partnerships with India to share ‘resources,technology and skills’,he promised to expedite reforms and further liberalise the foreign investment regime. With US retails chains like Walmart keenly interested in setting up shop in India,the issue of allowing foreign direct investment in retail is also expected to feature in the bilateral meeting during the day.

Mukherjee,on a three day tour of the US along with top officials from the finance ministry,the Reserve Bank of India and the Securities and Exchange Board of India,is expected to pitch India’s image as an investment destination,especially after flagging FDI inflows in the past one year. Prior to his visit,the finance ministry also announced long awaited norms for setting up infrastructure debt funds as well as allowing foreign retail investors to invest in domestic mutual funds

The finance minister admitted that sustaining the growth momentum in the long term and the high inflation levels were significant challenges. “The policy makers have to be far more alert and prompt with their response and,at the same time,need to explore innovative approaches to sustain growth with stability,” he said.