Mumbai, March 8 (Agency) Prime Minister Narendra Modi on Tuesday said that the participation of financial institutions in the progress of India is critical. Speaking at the post Budget webinar on ‘Financing for Growth & Aspiration Economy’, Modi said that there is a need to create viable financial models to give a fillip to the priority sectors to reduce India’s dependence on other countries. The Prime Minister also said that despite the biggest pandemic in 100 years, India’s economy is catching speed because of the financial decisions taken by the government and the strong foundation of our economy.’ “To give momentum to India’s progress in the 21st century, there is a need to give priority to financial viable models in all the priority sectors. Keeping in mind the aspiration of India and the way in which we want to move forward, the participation of financial institutions will be critical,” the prime minister said.
He further said that India is implementing the Aatmanirbhar Bharat program to reduce its dependence on other countries. “In this scenario, it is necessary to work out different financial models to fund various projects that would reduce our dependence on other countries. There is a need to brainstorm on how this can be achieved,” Modi added. He added that the financial institutions will have to play a major role in the successful implementation of the projects undertaken under the Prime Minister Gati Shakti Master Plan. Speaking about the Budget 2023, he said the government has taken various initiatives to continue the momentum of rapid growth, which include encouraging foreign capital flows, reducing tax on infrastructure investment, and creating institutions like NIIF, Gift City, and new DFIs, among others. Modi further said that we need to identify 8-10 sectors where India can be among the top three and it is essential for financial institutions to support such companies. Some of the areas that India has opened are the drone, space and geospatial sectors. “This has opened huge possibilities for our youth. We should work towards taking India among the top three countries in the world in such sectors,” he added. Talking about the Central Bank Digital Currency, Modi said the plans for CBDC reflects our vision.
“Our startups can grow only when we encourage entrepreneurship, lay stress on innovation, and focus on new business areas. The financing sector needs to look at new futuristic ideas, innovative financing of initiatives and sustainable risk management,” Modi said. Reiterating India’s commitment to net-zero carbon emissions by 2070, Modi said that to achieve the target, it is necessary to accelerate green environment-friendly projects. Speaking about the potential of the rural economy, Modi said that there is a need to strengthen the rural economy by proactively helping them in getting finances. “We have to recognise the huge potential of our rural economy. Our agricultural sector can play a crucial role in building an Aatmanirbhar Bharat,” he added. Modi also underscored the importance of building digital highways to rural India, tailoring financial inclusion products to suit rural needs.