Friday, October 19, 2007

Chidambaram on MIFC

Mr. Chidambaram said:

Given the current exchange rate, India is a trillion dollar economy. Outflows and inflows together account for nearly 106 per cent of the GDP. As the economy becomes more open and trade intensity increases, giant financial flows will be intermediated in India. India is a purchaser of international financial services. A recent report has estimated the value of these services at US$ 13 billion a year and has concluded that this will rise to US$ 48 billion by the year 2015. While India will continue to be a purchaser of financial services, we believe that there is an opportunity for India to become a provider of financial services as well. It is, therefore, our intention to make Mumbai an International Financial Centre. We commissioned a report for this purpose. The report is in the public domain and we are in the process of building a consensus on the key recommendations. It is our intention to make financial services the next growth engine for India.

3 comments:

  1. As Lenin would have it, one step forward, two steps backward

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  2. A lot of talk and no action..sorry but we have a little problem on hand and its called as communism...get rid of these people and see the magic....Mumbai will lag behind Karachi if these commies are not kicked out..

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  3. When the MIFC report was presented to the public at a function organised by the CII in Mumbai some six months ago, Chidambaram had ridiculed the concept stating that before Mumbai could think of a finance centre it must first get its infrastructure under control and its governance. Now the turnaround.

    Could it be because Gujarat has already started work on a finance service centre on 500 acres of land near Ahemdabad. The land has been allotted, some contracts already signed, and the construction work begun. Letters of intent have already been signed with Chescor, Kutak Bank and IL&FS each taking in excess of a mkillion square feed in that city. Almost 250 acres of that city has already been earmarked for being an SEZ -- where incidentally liquor shall also be permitted. :-)

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