Reserve Bank of India Governor Shaktikanta Das on Thursday asked the corporate sectors to come forward in a big way and set up investments for the growth of the Indian economy as India’s growth trajectory remains strong, driven by key economic factors gaining momentum.
Speaking at the FIBAC 2024 - Banking for Viksit Bharat event in Mumbai Das said, " It is Time for the corporate sector to come forward in a big way to step up investments as visible signs of private investments happening"
Das also noted that the Indian economy is at a pivotal moment, experiencing significant changes across various sectors and poised for substantial shifts.
“Our nation’s progress toward becoming an advanced economy is supported by a unique blend of factors: a young and dynamic population, a resilient and diverse economy, a robust democracy, and a rich tradition of entrepreneurship and innovation,” Das said.
He mentioned that reforms like GST and IBC have yielded long-term positive outcomes and also advocated for new land, labour and agricultural market reforms.
"With monsoon progressing well and healthy Kharif sowing, food inflation outlook could become more favourable and the best contribution that monetary policy can make for sustainable growth is price stability as India has made remarkable progress in extricating people out of poverty," added Das
Das also stressed on improving female labour force participation in India as it is lower than global average, a recent report has forecast that the next five years are crucial for the country to achieve a GDP growth rate of 8 percent, and to ensure that growth, women must account for more than half of the new workforce which will be created by 2030.
The RBI GUV also asks financial institutions to develop tailor-made products to support women-led businesses without diluting underwriting standards.
Speaking about MSMEs Das said, "Many MSMEs remain small in size and do not scale up due to various reasons and banks must develop tailored products for MSMEs."
He also mentioned that only regulated entities will be allowed on the ULI platform to ensure prudent lending and ULI will not be a select club of few players.
(Inputs from PTI)
