Govt has a clear vision for India’s financial sector’: PM Modi
- The Prime Minister praised the role played by fintech in making financial services accessible during the pandemic last year and predicted that the sector “is likely to grow to ₹6 lakh crore”.
Prime Minister Narendra Modi on Friday said his government has a clear vision regarding the financial sector in this country and that there are “no ifs and buts” as he reaffirmed its stance on strengthening the public sector. “To strengthen the public sector, equity capital infusion is being stressed on. A new ARC structure is also being made to take care of NPAs (non-performing assets),” PM Modi said while addressing a webinar on budget proposals.
PM Modi insisted that not every decision taken by the government has bad intentions, adding that the country's financial and banking sector had been weakened due to aggressive lending in the past, which was brought in control by his government. “The country's financial and banking sector was weakened in the name of aggressive lending about 10 years ago,” he said.
PM Modi stressed the steps taken to do away with non-transparent trading culture, adding that insolvency and bankruptcy codes brought by his government helped foster trust and belief for lenders and borrowers. Reinforcing his previous stance on promoting the private sector, he said, “Our endeavour is to promote private sector business but public sector banks and insurance sector have an important role in the country”.
He talked at length about the recent privatisation bids for two public sector banks, raising the foreign direct investment ceiling in the insurance sector, and the Initial Public Offering of LIC. “There is still great scope for the banking and insurance sectors in our economy. Keeping this in mind, we have taken many steps in this budget -- be it our decision to privatise two PSBs, raising FDI limit to 74% in insurance or our decision to bring LIC IPO,” he said.
PM Modi also outlined the role sovereign wealth funds, pension funds, and insurance companies are expected to play in the country’s future and said that the government has made asset creation a priority in this year’s budget. “Sovereign wealth funds, pension funds, insurance companies are being encouraged to get involved in infrastructure projects,” he said.
He reinstated his call for an Aatmanirbhar Bharat or self-reliant India. “Our start-ups and MSMEs would be the identity of Aatmanirbhar Bharat that is why special schemes were formulated for MSMEs during the time of Covid pandemic. Under these schemes, around 90 lakh enterprises have been given credit worth ₹2.4 trillion,” the PM said.
The Prime Minister praised the role played by fintech in making financial services accessible during the pandemic last year and predicted that the sector “is likely to grow to ₹6 lakh crore”.