It is in the interest ofthe States (which do not control the currency and repo rates) to work closely with the banking sector to ensure that the lifeblood of credit reaches everyone in a timely manner, Finance Minister Palanivel Thiaga Rajan said.
Delivering the keynote address at the Confederation of Indian Industry’s event, ‘The India Finance Forum (TIFF) 2022’, he pointed out that the Indian banking system and debt market needed a lot of improvement.
The 12th edition of TIFF was held virtually, on the theme: ‘Beyond Resilience: Turnaround & Transformation’.
Mr. Rajan noted that the unsecured credit growth in India had been very poor, which was acting as a stumbling block, especially to social justice and equality and ensuring economic fairness. TheFinance Minister said he had made it a point to attend all State Level Bankers’ Committee meetings, and had sought data on the performance of each bank branch to get a sense of what was happening and take necessary action, if needed. Mr. Rajan also reaffirmed his point about closing the gap between the stated intent and the outcome. As an example, he pointed out that while the Union government and the RBI had announced various COVID-19 relief measures for MSMEs, there was a lack of awareness at the branch level.
The Finance Minister reiterated the need for improving cooperative federalism, where the Union government sets the agenda and drives the vision, and needs the States and the local bodies to execute them, especially to reach the middle and the bottom of the pyramid. Mr. Rajan stressed the need for improving the administrative capability in government, citing the recent example of a shortage of IAS officers at the Central and State levels. He also underscored the need to improve the GST system. In her keynote address, Rupa Dutta, Principal Adviser, Department for Promotion of Industry & Internal Trade, Ministry of Commerce & Industry, Government of India, highlighted the various measures taken by the Centre during the pre-COVID and COVID period.
“The government is focused on building world class industrial infrastructure. Next generation infrastructure is set to see an investment of $1.4 trillion in the coming years,” Ms. Dutta said.
