Indo-US CEO forum plans on fast track

A high-level committee headed by Economic Affairs Secretary Ashok Jha has been set up to put on the fast track the implementation of the Indo-US chief executive officer's forum report unveiled during US President George W Bush's visit in March.

The committee, set up earlier this week, will delve into the forum's recommendations on the financial sector, including the creation of a $5-billion investment fund, advancing the road map for foreign ownership of Indian private sector banks and removing restrictions on new branches of foreign banks. It will submit its report in 3-4 weeks.

The Planning Commission is coordinating the entire exercise. Separate task groups are working on the 26 distinct areas identified in the CEO's forum.

Their reports will form the cornerstone of trade and investment-related discussions during Planning Commission Deputy Chairman Montek Singh Ahluwalia's visit to the US later this year.

Ahluwalia's visit is crucial as it will prepare the groundwork for Prime Minister Manmohan Singh's US visit in September. "The government wants at least some of the recommendations of the forum to be implemented by then," an official said.

Officials added that a committee comprising representatives of the Reserve Bank of India, the Insurance Regulatory Development Authority and banking sector nominees was finalising the contours of a regional financial centre planned for Mumbai.

The 26 recommendations of the forum have been divided into short-term and long-term working goals.

"Some of the recommendations like reviewing FDI caps in retail, insurance and banking will take time. Other suggestions are already being worked upon. For instance, India has relaxed the number of bank branches that it allows foreign banks to set up here," the officials added.