India in striking distance of 8% growth as reforms boost economy: Shaktikanta Das
Das said the BFSI sector has a crucial role to play in India's journey from a lower-middle-income economy to a high-income economy, through its intermediation in allocation of financial resources. He said the sector would be required to support India's next-gen Digital Public Infrastructure (DPI), be the frontline of green and transition finance and become the catalyst for democratising financial…
Mumbai: India is on the cusp of reaching an 8% growth rate, according to Shaktikanta Das, a senior government official and former central bank governor. The Prime Minister's principal secretary-2 attributes this potential surge to policy stability, ongoing structural reforms, and strategic initiatives to boost domestic production in sectors where the country is heavily reliant on imports.
Das highlighted the crucial role of the financial services sector in driving India's economic transformation, noting that it must play a pivotal role in powering growth and aiding the nation's evolution from a lower-middle-income to a high-income economy. The BFSI sector is tasked with supporting India's digital public infrastructure, facilitating green and transition finance, and promoting financial inclusion.
Das emphasized that micro, small, and medium enterprises, as well as agriculture, are key drivers of India's economy. Empowering these sectors will require leveraging alternative digital identifiers like GST records and account aggregation for instant credit underwriting. The implementation of the Unified Lending Interface by the Reserve Bank of India (RBI) could be a significant milestone in this regard.
Furthermore, Das stressed that the BFSI sector must facilitate the financialization of savings, shifting India's focus from physical assets like gold and real estate to productive financial assets through micro-investment and mutual fund products. The successful advancement of India's "Viksit Bharat" mission, amidst global turbulence, is contingent upon a robust, efficient, and profitable BFSI sector.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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