MY BIZ: Finance Ministry declares war on CAD

Obama touts mortgage finance plan, highlights private sector role

Finance ministry officials are preparing a list of items which would be taken up soon. Enlarge Finance minister P. Chidambaram had indicated that the government will attract funds from non-resident Indians and clamp down on the import of non-essential items such as electronics. The government also expects to contain gold imports to the last year’s level of 845 million tonnes to save a considerable amount of foreign exchange, which would help contain CAD. The country spent a whopping $50 billion on gold imports last year.

RAGHURAM RAJAN

To do so, the agricultural and financial sectors must form new linkages and better align their visions, blending those who can implement innovative approaches to boost agricultural production and supply inputs such as seeds, fertiliser, and water, and outputs including storage, processing and distribution facilities, and access to markets, with those who can finance those activities. To help bridge these sectors, in July The Rockefeller Foundation hosted a summit in Abuja, Nigeria, titled Realising the Potential of Africas Agriculture: Catalytic Innovations for Growth. The summit, one of our centennial convenings focused on forward-looking solutions to challenges that will define our second century of strategic philanthropy, brought together agriculture and finance ministers, along with other leaders, from more than 23 African nations, in an unprecedented conversation to identify concrete ways to strengthen African agricultural markets and value chains to benefit smallholder farmers. Over the course of the summit, participants identified a number of innovative solutions and financing models that can encourage increased lending to farmers.

Bridging Finance And Innovation To Advance A Green Revolution in Africa

Edward Mills, an analyst at FBR Capital Markets, said Obama’s proposals were well-timed. “There has been real concern about not doing something that disrupts the housing recovery. Now that we’ve seen housing come off its lows, there is this desire to say what’s the next step. This fills that void,” he said. Mills cautioned against winding down Fannie and Freddie too quickly.

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