Marketing Reforms in India a Big Challenge: Arun Jaitley

Finance Minister Arun Jaitley today spoke at the India Economic Summit in Delhi. Here are some points he made:

• Reforms in developed society are different because people there have already tasted fruits of development. In a country where a very large number of people are so poor, marketing reforms to them is very challenging for a government
• Our reform process cannot be one that simply confronts public opinion – doubts have to be cleared. Debate has to continuously go on
• Reforms process in India has to weigh the requirements of each sector
• Have recently opened up defence sector- it was always considered very sacrosanct in India. As a result, we became only buyers.
• India had fallen off global radar over last 2-3 years. Buzz around India is back.
• Allegations of crony capitalism were true (under last government). Element of fairness in the system was lacking.
• Retrospective tax (Vodafone case) was a bad idea which damaged the economy.
• Taxpayers can’t continue to pay for loss-making businesses. We will continue on path of divestment. Will look at some Public Sector Units that may do better in private hands
• We are liberalizing insurance sector a little more – hope the amended bill would be passed by Parliament later this month.