Finance Minister P. Chidambaram promised more reforms in banking and insurance, among other sectors, and expressed confidence that the country will return to 9 per cent growth.
“We will return to 9 per cent growth once we address certain fundamental constraints,” he told BBC in an interview.
"As we address these issues and our savings rates grows up, investment rate grows up to 37-38 per cent, we will return to 9 per cent growth rate," he added.
The government’s first push of reforms led the Trinamool Congress, a former UPA ally, to walk out of the government.
In another round of big-ticket reforms, the Union Cabinet will likely approve today a hike in the 26 per cent cap on FDI in the insurance sector to 49 per cent and the opening up of the pension sector to foreign investment, besides the creation of a National Investment Board.
The Cabinet will also consider a number of other crucial measures like giving more powers to commodity market regulator FMC, the Competition Bill to bring all sectors under Companies Act, and model tripartite agreement for operationalising the Infrastructure Development Fund.