Big Bang reforms to rescue India

After months of policy paralysis, India's beleaguered government roared back to life announcing big bang reforms aimed at reviving growth. In less than 24 hours, the government announced more measures to liberalize the economy than in the past eight years. The government opened up its supermarket sector to foreign chains and increased the limit of foreign investment in airlines and broadcasters.

In another round of big-ticket reforms the government announced that it planned to allow more Foreign Direct Investment or FDI in the pension and insurance sectors, many parties however were opposed to this move.

FDI in retail would mean a wider choice of products, lower prices for good and creation of employment. The move would also benefit farmers hugely. Farmers in India today receive only a small share of the end consumer price.

FDI in aviation is likely to spur more investments, lead to expansion and mergers and acquisitions open up jobs and probably even reduce airfares.