Finance Minister P. Chidambaram expressed concern over the status of power sector reforms. Addressing the third Hindustan Times Leadership Summit here on Wednesday, he contended that the problems in the power sector were huge and seem almost intractable.

“The PM and I are concerned over this sector,” he added. “Recently, Ratan Tata made a presentation on the sector. We have identified four or five issues in the short-term and three or four medium-term ones. It is a full-time task for someone…,” Chidambaram said.

For a higher growth in the agriculture sector, the FM said there was a need to rope in the corporate sector to help the government in the logistics chain.

He said key pieces of legislation aimed at deepening the reform of the banking and insurance sector would make financial markets more efficient. Two bills on the banking sector reform and one on pension are before the Parliament. “These bills, if passed, would mean that I can have a good Christmas,” he said. The session on ‘Building a better future for India’ was moderated by T.N Ninan, Editor, Business Standard. Setting the stage for the FM’s speech, Ninan said India was at the moment enjoying the best macro-economic situation with a buoyant stock market and ambitious tax reforms among other factors. “There is nothing to stop us from going hell for leather, except better physical infrastructure,” he said.

That set the stage for Chidambaram to dwell on the overall economic framework and the steps that needed to be taken to ensure that India takes a seat at the (global) high table. Stressing on the fact that development had to be equitable and inclusive, the FM said, “We cannot leave anyone behind. Growth is an imperative. Critics point to market failure, advocates of reform point to government failure. The government in the past went into areas that it need not have. In many others, it has failed — primary healthcare, sanitation and education,” he said.

The FM was categorical that the biggest failure was on the infrastructure front. “China is overbuilding capacity hoping on economic growth where the capacity will be very handy. We have a deficit in every area and that needs to be made up fast. That will help us break, what appears to be a barrier level of 7% growth rate,” he said. The FM pointed out that this could only happen with massive doses of investment – both foreign and domestic. “Bulk of India’s investment needs will be met from within”, he said, adding that “wise people save and wiser people borrow”. Pointing out that FDI was savings from overseas countries, the FM said if the growing saving potential of India’s young population and foreign savings could be channeled effectively, the country would “then be poised for 8 % growth”.