Mumbai In High Growth Lane.

Govt said it plans to turn Mumbai into a global financial centre to provide a host of services to clients across the world.

A committee is looking into this aspect and expected to submit its report by November end, Finance Minister P Chidambaram said at the annual conference on Indian Financial Market, organised by CII and the Asia Society here.

Mumbai, he said, is geographically an ideal location for establishment of such a centre.

Pointing out that long term funds are the key issue in developing infrastructure, Chidambaram said pension and insurance reforms are overdue.

There is a need for changes in the insurance laws and insurance penetration also needs to increase, he said, adding that pension reforms is another key area.

But the government's Left allies have, however, opposed a bill to amend the Insurance Act to increase FDI cap in the sector to 49 per cent from the current 26 per cent and a bill to set up a regulator in pension sector.
The Finance Minister had earlier sought political space to pass these legislations.

Chidambaram said he had absolute confidence that India could rank in the top three global manufacturing hubs for industries linked to steel, refining, textiles, automobiles, automobile parts, light engineering goods and leather and food products.

He said the capital markets in India was one of the best regulated in the world but stressed on the need for developing the debt markets, which are at a very nascent stage.