Banking sector driving economic reforms: FM

Finance Minister P Chidambaram has described the country's banking sector as the driving force of economic reforms though New Delhi is still to fully open the sector to foreign financial institutions.

Lauding the incredible reach of public sector banks, Chidambaram said: "The success of the economic reforms is there for all to see, and the driving force of the economic reforms is the banking sector."

Chidambaram, who was speaking at the golden jubilee celebrations of the UK operations of Bank of Baroda here last night, had earlier assured the British investors that New Delhi would soon push through bills pertaining to reforms in the pension and insurance sectors.

Overseas investors, including those in the UK and the US, have for long been seeking access to India's financial markets, but reforms have been slow to come owing to pressures from coalition partners.

Chidambaram said the economic growth rate is nearing 9%, and and this could be maintained and improved upon. "India is firing on all cylinders and one can see hunger and drive in every section (to achieve progress). We must continue this for the next 15-20 years and it is possible," he added.