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: India@75 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.