Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

"The Indian economy has been resilient, despite going through a major shock with the financial system coming out stronger" Shri Sanjeev Sanyal, Principal Economic Advisor, Government of India

09/17/2021 | 10:22am EDT

'The economy has been resilient despite going through a major shock. The financial system has come off rather well, especially the banking system', stated Shri Sanjeev Sanyal, Principal Economic Advisor, Government of India. He was speaking at the special plenary session on the 12th Financial Markets Summit 'Building India for a New World: Role of Financial Markets', organized by the Confederation of Indian Industry.

Mr. Sanyal further stated that all the efforts undertaken by the Indian Government in cleaning the banking system, from 2017 onwards, such as the use of Insolvency and Bankruptcy Code, creation of Bad Bank and other measures, helped in creating a robust banking system and build the foundations for long term growth. This helped banks and Non-Banking Financial Companies come off the Covid cycle rather well, he added.

With respect to issues relating to normalization of global liquidity, Mr. Sanyal stated that global policymakers are cognizant that they have to withdraw the excess liquidity at some point and that they intend to do this in a smooth and efficient manner. 'The RBI is also conscious of this and excess liquidity is something we need to watch out for,' he added.

Speaking on the issue of accelerating growth of the Indian economy, Mr Sanyal stated that there is a lot of space on the fiscal side and the Government intends to use this fiscal space on capital expenditure as supply side approach to demand management. This will have multiplier effect on job creation and leave assets for future generation and not just debt. This will also ensure dividends for the Indian economy in the longer run as there is capacity in the economy to reaccelerate when the opportunity arises, he stated.

Mr. Sanyal mentioned other sectoral reforms that have been undertaken by the Government of India to support long term growth including opening up the Drone sector or the Cartography or the geospatial sector, removal of retrospective taxes, removal of outdated telecom regulations, among others. He further added that big reforms such as bilateral netting has created the space for the development of a Credit Default Swap (CDS) market, which in turn is critical for the creation of a corporate debt market.

The opening up of factoring is another area of financing that has huge potential to grow and is an important source of trade finance, stated Mr. Sanyal. This will be a critical source of financing, especially for the MSMEs and will also allow significant penetration of NBFCs as well, apart from banks, he added.

Mr. Nilesh Shah, Chairman, CII National Committee on Financial Markets and Group President & Managing Director, Kotak Mahindra Asset Management Co. Ltd moderated the session.

17 September 2021


CII - Confederation of Indian Industry published this content on 17 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 September 2021 14:21:06 UTC.

ę Publicnow 2021
Latest news "Companies"
04:24aPFIZER : United States Donates 1.6 Million More COVID-19 Pfizer Vaccines to Egypt This is part of more than 8 million Pfizer vaccine doses the United States is sending to Egypt
04:18aNETCETERA : ACS ensuring secure payments with American Express Middle East
03:41aChina surprises U.S. with hypersonic missile test, FT reports
03:22aVAXIL BIO : Signs letter of intent to acquire a 100% interest in short wave pharma inc.
02:48aChina could widen property tax trial, official media outlet reports
02:47aCzech car sector to make 250,000 fewer vehicles this year due to chip shortage
02:42aBAHRAIN ISLAMIC BANK B S C : BisB Ushers in Apple Pay for its Customers Enabling Easy, Secure & Private Payment
02:32aHANG SENG BANK : Becomes First Hong Kong Bank to Extend Equity-linked Investment Product Subscription Service to US Securities for Retail Investors (17 October 2021)
02:28aKYODO NEWS DIGEST : Oct. 17, 2021 -2-
02:23aADNOC DRILLING P J S C : FTSE adds ADNOC Drilling to three of its global equity indices -statement
Latest news "Companies"