Economy

Time to evolve more innovative means of financing: Finance Secretary Garg

Our Bureau New Delhi | Updated on April 04, 2019 Published on April 04, 2019

Subhash Chandra Garg, Finance Secretary   -  PTI

‘Need to enable top global govt pools of sovereign and pension funds to invest in India’

The financial sector in India has to be cognizant of the changes that are happening in the different elements of the economy, Finance Secretary Subhash Chandra Garg said.

Addressing a session on ‘Future of Financing’ at the CII Annual Session 2019 with the theme of ‘India 5.0: [email protected] and Beyond’, Garg said investments are needed in three main areas — infrastructure, digital economy and circular economy. Garg said the infrastructure sector more investment and there is a need to enable top global government pools of sovereign and pension funds to invest in India.

Uday Kotak, President-Designate, CII and MD & CEO, Kotak Mahindra Bank Ltd, identified six crucial stakeholders for development of a strong financial system — outstanding management, strong corporate board of directors, institutional investors, rating agencies, auditors and regulators. Kotak said there has to be a strong interplay among the stakeholders to build a robust, sound and sustainable financial system.

Sanjay Nayar, Chairman, CII National Committee on Private Equity & Venture Capital & CEO, KKR India Financial Services Pvt. Ltd, observed that India must rely more on domestic savings that are both of high quality and of a longer duration.

He also stressed the need for a ‘super regulator’ in the financial sector to take crucial calls and decide on the trade-offs.

Kotak felt that strengthening of the Financial Stability Development Council (FSDC) with even more active role of the Finance Ministry is crucial for building a policy framework for India.

“I do believe that one of the very important instruments for financial sector stability is FSDC. We are in a world where we need much greater coordination among regulators and policy makers for thinking about a holistic policy for financial sector,” Kotak said.

Published on April 04, 2019
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