Sunday, June 17, 2012

FM: Move towards wealth generation

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The government is in talks with regulators and market participants to formulate a national policy on financial reforms, and is also seeking inputs and feedback on taking forward policy reforms.
“It is time for people to switch from savings mode to wealth-generation mode,” said finance minister Pranab Mukherjee, speaking at the Zee Business India’s Best Market Analyst Awards 2012 on Saturday.
Mukherjee cited that there are high investments in gold and suggested that investors should be encouraged to channel their savings into the financial markets.
He noted the importance of analysts and financial innovation in empowering retail investors by providing them with information in an effective and ethical manner, given the conflict of interest in the sale of financial products.
Mukherjee emphasised the need to regain and then sustain an 8-9% GDP growth rate, which would require the narrowing of the current account deficit, a move towards fiscal consolidation as well as a need to encourage higher growth in exports.
Zee group chairman Subhash Chandra said that the presence of Zee channels in more than 160 countries outside of India was proof that overseas investors continue to perceive India as a sought-after investment destination.
Drawing attention to his recent nomination as the ruling coalition’s candidate for presidency, Subash Chandra said that although Mukherjee’s adept handling of the economy would be sorely missed, his positive influence on the economy would continue.
“India will march ahead, and though we will miss your skills of manoeuvering the economy’s direction, as a president, we know you will keep an eye on growth and country,” he said.
Meanwhile, it’s not all gloom and doom for the market, said market experts at the awards ceremony. Rakesh Jhunjhunwala, partner at Rare Enterprises, said the future of Indian financial markets looks good.
“Don’t look at the next three to six months. The long-term view is good. Pessimism is at á high right now.So, if commodity prices remain where they are today, then inflation and interest rates will come down drastically,” he said.
Ridham Desai, managing director at Morgan Stanley India, said now was a good time to buy shares.

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