Pranab Mukherjee, Finance Secretary, has said the country needs to invite foreign supermarket chains, insurance, defence and engineering companies to help modernise agriculture, financial services and transport infrastructure.

His proposed reforms would shake up the country's strictly regulated labour market, allowing companies to increase working hours and make staff redundant without government approval.

The annual Economic Survey he presented to parliament has recommended private companies be allowed to provide passenger train services on the country's nationalised railways, privatisation of the coal industry, lifting of price controls on petrol, and allow foreign supermarkets to set up stores.

Ministers are particularly keen to boost rural incomes and encourage investment to stop so much Indian farm produce rotting on the road to market.

[Torygraph Alert]