Media reports indicate that the government may take steps to develop financial markets in the country, as part of its economic reform drive.
In this regard, the government may launch financial instruments intended to encourage foreign sovereign wealth funds to invest long-term money in India.
The Indian government is desperately trying to attract foreign investment into the Indian financial market in order to bridge the high current account deficit.
India has just $260 billion of foreign exchange reserves, which is barely enough to cover six months of imports, down from nearly 15 months in 2008.
Union finance ministry may relax foreign direct investment (FDI) regime in order to raise foreign investment limits for defence and multi-brand retail, the so-called sensitive sectors.
Based on the recommendations of a committee headed by Arvind Mayaram, secretary in the department of economic affairs, top bureaucrats will present a FDI reforms agenda that the FM has said will be taken up in the third week of July, media reports indicate.
The finance minister, meanwhile, is learnt to have discussed with economists and market participants ways to revive economic growth in the country.
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