FACTBOX-Major pending economic reforms in India

Feb 26 (Reuters) - India's Congress party-led coalition
will present its fifth budget on Feb. 29, which is expected to
focus on farms, education, healthcare and tax reforms, and
unveil medium-term measures to fight food-price inflation.

Finance Minister Palaniappan Chidambaram, a member of the
left-leaning coalition elected in May 2004, is also expected to
boost investment in infrastructure, particularly roads, ports
and power, in the 2008/09 budget.

The Indian fiscal year runs from April 1 to March 31.

Following are details of pending reforms that economists
and the government say are necessary to sustain economic growth
of around 9 percent annually for several years and reduce
poverty in Asia's third-biggest economy.
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* PRIVATISATION: Stake sales in state-run firms. The
Congress-led coalition has abandoned privatisation, bowing to
pressure from its communist allies.

* BANKING: The government has said ownership in state-run
banks will not fall below 51 percent, which analysts say acts
as an obstacle for growth in the sector. Current government
holdings in state banks range from 51 percent to total
ownership.

Private banks can offer up to 74 percent to foreign
investors while public sector banks cannot offer more than 20
percent.

RETAIL: India limits foreign, multiple-brand retailers to
wholesale or franchise and licence operations. Talk of easing
foreign investment rules has cooled, prompting Tesco Plc
(TSCO.L: Quote, Profile, Research) to shelve plans for India.

AVIATION: Although foreign funds can invest in Indian
airlines, India bars overseas carriers from doing so. A move to
allow foreign airlines into the local market has been opposed
by the government's communist allies.

FARMING: The government wants to double farm incomes by
2010. Initiatives include doubling the rate of growth of public
and private investment in agriculture, launching fresh
irrigation projects and developing wasteland for productive
use.

INFRASTRUCTURE: According to policy makers, India will need
investment of about $500 billion to upgrade infrastructure in
the world's second-most populous country. Cutting red-tape is
seen as necessary to attract investments.

FOREIGN INVESTMENT: The foreign ownership limit in
insurance has been stagnant at 26 percent despite a
long-standing policy proposal to raise it to 49 percent.

PENSION FUNDS - A move to allow 26 percent foreign
investment in pension fund management companies awaits the
approval of parliament.
(Compiled by Saikat Chatterjee; Editing by John Mair)