Optimum level of control needed for Indian markets: Shome

"India has a well-regulated financial sector. It needs to reach an optimum level of control and maintain a fine balance, thereby not killing the agenda of development finance," Finance Minister P Chidambaram's tax advisor Parthasarathy Shome said at a conference.

The conference was organised by the Haryana-based O P Jindal Global University in collaboration with the FGV law school in Brazil and the Indian Institute of Foreign Trade to examine business, legal and regulatory opportunities in developing countries.

To promote investment in infrastructure sector, Shome suggested that the government should "bear the burden of risk allocation and risk mitigation in financing infrastructure".

The Planning Commission has pegged the fund requirement for the infrastructure sector during the 12th Five Year Plan (2012-17) at USD 1 trillion of which a large portion would have to come from the private sector.

Shome's reports on the controversial issues of General Anti Avoidance Rules (GAAR) and indirect transfer of assets are awaiting decision by the government.

Addressing the conference, T K A Nair, Advisor to the Prime Minister of India, said that BRICS grouping of India, Brazil, Russia, China and South Africa is the "primary vehicle" for sustained global economic growth and recovery.

"BRICS is thus perhaps best seen as a new growth pole in a multi-polar world", he said while stressing upon the need for BRICS countries to learn from and co-operate with each other to grow collectively.

Speaking at the occasion, C Raj Kumar, Vice Chancellor of JGU, said there was a need for closer cooperation and partnership across all areas of economic development including international trade, foreign direct investment, and capital and development finance among developing countries.