India to clock 9% plus growth rate in coming years: Pranab

Mumbai, Mar 26 (PTI) Committing to expedite the
financial sector reforms, Finance Minister of India Pranab
Mukherjee Saturday exuded confidence that India will achieve
over 9 per cent economic growth rate in the coming years.
"With strong macro-economic fundamentals and the
resilience shown... by the economy in face of adversities, I
am confident that we are headed for a 9 per cent plus growth
in the coming years", Mukherjee said while addressing a award
function organised by Bloomberg UTV television channel.
Indian economy is expected to record a growth rate of
8.6 per cent in the current fiscal, up from 8 per cent a year
ago. The economy was growing by over 9 per cent before the
global financial crisis pulled down the growth rate to 6.8 per
cent in 2008-09.
Expressing the government's commitment to continue the
financial sector reforms, Mukherjee said the Financial Sector
Legislative Reforms Commission (FSLRC) would be set up soon to
recast financial sector laws.
"It (FSLRC) will help in recasting and reframing the
legal framework of the financial sector, making it ready to
face the challenges for the coming decades. It is futuristic
and will set the stage for the next generation reforms", the
Minister said.
The cabinet has already approved the proposal to set
up FSLRC under the chairmanship of retired Supreme Court Judge
B N Srikrishna, he said, adding, "we have not attempted
anything of this type in our history".
The financial sector reforms, which include revamping
of direct and indirect tax structures, Mukherjee said, were
aimed at making economy more competitive and the regulatory
and oversight systems more efficient and sensitive to new
developments.
The Minister further said that efforts would be made
to encourage stronger disclosure standards for systemically
important financial institutions as well as complex financial
products.
With regard to tax reforms, he said, the government
was in the process of implementing Direct Taxes Code (DTC) and
was working on introducing the Goods and Services Tax (GST).
The government has introduced a Constitution Amendment
Bill in the Lower House of Parliament, Lok Sabha, to
facilitate the implementation of the GST, which "is likely to
improve tax collections and boost India's economic development
by integrating the Indian market through a uniform tax rates.
"I am confident that together with DTC, this will
streamline the tax administration of the country by making it
efficient and equitable", he said.
Mukherjee said that Budget 2011-12 has laid down a
heavy legislative agenda for the financial sector with as many
as seven major bills are to be introduced in Parliament, of
which some have already been introduced in the brief session
that has just concluded.
He also said there is a need to make participation and
investment in markets simpler and friendlier to suit the small
investors.
"The small investor should have simple procedures to
follow, short forms to be filled in and easy and effective
redress, when required. They should not be at the mercy of the
big brokerages and intermediaries," he said.
Mukherjee added there is a case for further
encouraging the institutional route to investment, like mutual
funds, for the retail investors.
"Here also there is much that could be done to make
the funds a collective investment vehicle for the common man,
not only in the cities but in the villages as well," he said.
Earlier in the day at the convocation ceremony of Sido
Kanhu Murmu University in Jharkhand, he said that there is a
challenge of strengthening and further building the inclusive
character of the society.
"The economy should be able to support productive
employment for all those who enter the labour force. The
benefits of economic growth have to percolate down effectively
to the most marginalised and vulnerable segments of the
population," Mukherjee added.