Faced with the anxiety of investors over languishing financial sector reforms, the government is likely to make a fresh push for early passage of the banking and insurance bills and Pension Fund Regulatory and Development Authority Bill. For nearly seven years now, the crucial reforms have not materialized. This was indicated by finance minister Pranab Mukherjee. The minister said he had apprised the PM of the matter, indicating that the government might attempt to get the banking and insurance bills — which among other things, seek to provide more space to foreign investors — passed in the winter session of the Parliament. He said it was possible to allow FDI in retail with the help of “broad political consensus”. Mukherjee also spoke of concern over the risk of a double-dip recession, saying the government was worried whether instruments at its disposal would be enough to tackle the challenge.
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