The who's who of Indian business fraternity was present at the national conference on 'Mumbai as an International Financial Centre,' held at Mumbai's Taj President on Monday.
While Finance Minister P Chidambaram enthralled all with his scintillating speech, Maharashtra Chief Minister Vilasrao Deshmukh could not make it to the event, although a copy of his speech was circulated among the attendees.
Here we reproduce Vilasrao Deshmukh's speech:
Honourable Union finance minister, office bearers of Confederation of Indian Industry and distinguished delegates,
Let me welcome you all to the deliberations of the National Conference on 'Mumbai as an International Financial Centre,' being held jointly by the Union ministry of finance and the CII. I am sure that the exchange of ideas so far among the distinguished delegates has been fruitful and would lay a foundation for establishing Mumbai as an international financial centre (IFC).
In the 21st century, markets for goods and services, finance and knowledge are no longer confined to national boundaries. The economic boundaries are increasingly becoming porous, permitting resources and services to move across traditional geographical boundaries. The entire world, as a result, is becoming a global village bringing economic communities closer to each other.
Since 1991, India's economy is gradually opening up and the results of this deregulation are there for everyone to see. Our nation has taken measured steps without hurrying through the process of deregulation keeping in mind the myriad contrasts that encompass our country.
Our progress has definitely been noteworthy across most of the activities outlined here. We will have to further improve upon the requisite infrastructure required for providing international financial services.
This infrastructure is, both, physical and institutional infrastructure. Mumbai already enjoys prominence in the country as the financial capital with existence of such infrastructure and skilled manpower.
Our country is a highly successful venue for business process outsourcing and knowledge process outsourcing. Both, BPOs and KPOs have helped in building up of skills amongst the finance professionals. Most of the operations in the BPO and KPO arena are repetitive in nature. Once these processes are established, these can be performed continuously by ensuring further lowering of costs, benefiting both domestic and foreign clients.
The concept of provision of international financial services through an IFC goes much beyond these two ideas. Operations in an IFC are to be performed by highly qualified and creative persons who have a specialised expertise in different financial activities. Such persons develop their own intricate network of colleagues and clients.
The services provided by IFC cannot be regimented to a set of protocols but they go much beyond that. What is required is qualified and internationally acclaimed financial firms which could be domestic and foreign.
To begin with, there will be more foreign global firms to join the financial arena here. Domestic Indian financial firms have to quickly upgrade themselves to international levels, I am sure that our institutions have the capacity and the capability to reach international standards in terms of knowledge as well as human resources.
Mumbai is best suited to become an IFC because of its unique geographic location, rich financial history, and availability of highly skilled professionals with extensive networking, presence of leading stock exchanges, financial institutions and regulators.
I am confident that with these positive attributes Mumbai can establish its claim to be an international financial centre much ahead of places like Dubai, Singapore, Frankfurt, etc.
An international financial centre takes the concept of globalisation one step further by providing individuals and institutions with an array of financial products and services through a network of financial institutions, markets and regulatory regime.
These financial products and services include banking, insurance, asset management, global transfer pricing, treasury market operations, risk management operations, financial re-engineering, support for merger and acquisition activities and framework for public private partnerships.
For strengthening the concept of globalisation, it would be necessary to ensure further liberalisation in financial sector. The central government has already initiated a series of steps towards this end and I am sure that the honorable finance minister would speak his mind on this aspect in his speech.
Definite but measured steps towards capital account convertibility would be one such initiative, which will have to be adopted in times to come. The regulatory regime in the financial sector should be so moderated that it does not dampen the spirit of innovation. Mumbai has had a large network of financial institutions for decades and thus enjoys an inherent advantage above every other city. The presence of leading financial minds, backed by skilled backoffice professionals, has continuously ensured that there is cost arbitrage advantage in favour of Mumbai as compared to any other destination.
This aspect has ensured a continuous inflow of best financial minds form the country as well as that of expatriates over the years. In order to ensure that financial experts and expatriates make Mumbai a permanent home, it is necessary to ensure that quality of life in Mumbai is comparable to the best of international cities.
Among global cities, Mumbai is a very safe and vibrant city. I am sure that these aspects would definitely help in establishing the claim of Mumbai as an international financial centre in the near future.
We recognise the fact that there is need to further upgrade the infrastructure in Mumbai -- both physical as well as institutional -- if Mumbai is to become a successful international financial centre.
I do not want to dwell here upon the different programmes launched by the Government of India, the state government as well as government bodies to upgrade the physical infrastructure in Mumbai, but let me assure you as the head of the (Maharashtra) state government that there will be a sea change in the landscape of Mumbai in the next 5 to 10 years.
The visible outcome of our efforts is already there for all to see. You would not only witness a better and bigger airport, better rail transport through metro, as well as a network of flyovers, better roads and sea links, but also additional capacity in every sector like water supply, power, sanitation, sewerage system, etc. This would make Mumbai comparable to any other international city of repute.
However, let me add here that a well developed city does not only mean well laid out physical infrastructure, it also means a distinct and better quality of life, spirit of competition and openness of society.
In Mumbai, at times, there could be some local demands for giving priority to son of soil while sharing the fruits of development or there could be some protests about the need to enforce moral policing. However, these are transient political processes which are trying to find additional elbow room in an already crowded political environment.
Let me assure you that when it comes to protecting interests of the Mumbai city, all these transient and local differences are set aside and all political, social and religious leaders unite together by sinking their differences and coming together for the development of a more modern, open, vibrant and competitive environment.
This has been the experience in the past, time and gain, proving that the 'never-say-die' spirit of Mumbai always enlivens and charges the atmosphere. While our nation itself is a very tolerant entity, Mumbai raises heads and shoulders above all in this aspect and I am sure that the entire financial community has been witness to this phenomenon in the past and will continue to do so in future also.
In the years to come, there should be more openness in financial systems which loosen up outdated controls and ensure competitive spirit at the same time. The cost of doing business in the city should continuously come down including the cost of real estate. This would enable us to attract the best institutions and the best individuals to this city and convert it into a true international financial centre.
I would request full and wholehearted support of the entire financial community in the endeavors of the central and the state governments in this regard.
Let me once again assure you that we will spare no efforts in terms of financial resources, in terms of opening of our systems and in terms of ensuring quality of life comparable to the best of the international cities in order to put Mumbai on the world map as a global financial centre.
Jai Hind! Jai Maharashtra!