Thursday, November 10 2005 18:39 Hrs (IST) - World Time -

New Delhi: US Treasury Secretary John Snow today (Nov 10, 2005) continued to pitch for further opening of financial sector in India, saying the gradual approach to liberalization would only hinder growth.

"There have been a variety of governments during 15 years (of economic reforms in India). Consensus on economic reforms has been sustained in that period. At the same time, there is some reluctance (to rapid liberalisation) and call for going carefully and gradually," Snow said, adding that there was a cost attached to gradualism.

"And this cost is all the benefits of economic growth that we give up," he said at an interactive session with FICCI, American Chamber of Commerce and USIBC.

More precisely, the visiting US dignitary made a case for further opening up of the financial sector, particularly banking and insurance, saying financial sector energies the rest of the economy.

Stating that insurance and banking are the prime candidates for further opening and lifting of the caps, he said such a measure would ensure better products in these two sectors.

Snow said his interaction with business leaders in India revealed that they want to take advantage of deepening of bond markets and other areas of financial market, which would make available better products, including future and hedging ones.

It is through financial sector that savings get appropriate returns and deployed to best use, he said.

"Financial sector facilitates the real sector and if financial sector is a handicap, the real sector will be a handicap," he said.