'India needs to encourage stability rather than rapid growth': Chief Economic Advisor
Addressing the industry at the CII Annual Business Summit, Nageswaran said the country needs to have capital market reforms to push growth, and that market regulators have an unenviable task ahead.
- May 17, 2024,
- Updated May 17, 2024 7:14 PM IST
Chief Economic Advisor V Anantha Nageswaran on Friday said that for India to become a developed nation by 2047, financial system stability and micro stability are the most important goals for now.
Addressing the industry at the CII Annual Business Summit, Nageswaran said: "When we talk about India's goal to become a developed nation by 2047, financial system stability and micro stability are most important. And for this, we might have to encourage stability rather than rapid growth."
He added that the country needs to have capital market reforms to push growth, and that market regulators have an unenviable task ahead.
"We are at a point where capital market reforms 2.0 are needed. Markets should be able to finance the equity needs of banks and otherwise too," Nageswaran said.
He added: "When it comes to three factors of production- land, labour and capital, capital primarily rests with the Union Government. Capital market reforms have been the most successful intervention of the Government in the last 3 decades. But, we are at a point where market reforms 2.0 has to spring like a bottom-up exercise."
The CEA also said the country needs to have a ballpark estimate of investments for a holistic and comprehensive picture, while also adding that these will be met through a combination of debt and equity.
Earlier in the event, veteran banker Uday Kotak said capital markets will be an enormous engine to finance India's growth. He added that India is fast becoming a nation of investors rather than a nation of savers.
Chief Economic Advisor V Anantha Nageswaran on Friday said that for India to become a developed nation by 2047, financial system stability and micro stability are the most important goals for now.
Addressing the industry at the CII Annual Business Summit, Nageswaran said: "When we talk about India's goal to become a developed nation by 2047, financial system stability and micro stability are most important. And for this, we might have to encourage stability rather than rapid growth."
He added that the country needs to have capital market reforms to push growth, and that market regulators have an unenviable task ahead.
"We are at a point where capital market reforms 2.0 are needed. Markets should be able to finance the equity needs of banks and otherwise too," Nageswaran said.
He added: "When it comes to three factors of production- land, labour and capital, capital primarily rests with the Union Government. Capital market reforms have been the most successful intervention of the Government in the last 3 decades. But, we are at a point where market reforms 2.0 has to spring like a bottom-up exercise."
The CEA also said the country needs to have a ballpark estimate of investments for a holistic and comprehensive picture, while also adding that these will be met through a combination of debt and equity.
Earlier in the event, veteran banker Uday Kotak said capital markets will be an enormous engine to finance India's growth. He added that India is fast becoming a nation of investors rather than a nation of savers.