Indian financial system becoming mature, need a big push in developing infrastructure
India's financial system is maturing and economic growth is on the mend, but the pandemic has asymmetrically affected the population, which must be bridged for sustainable, and inclusive growth, Reserve Bank of India (RBI) governor Shaktikanta Das said on Wednesday.
The governor also lauded the government's Production Linked Incentive (PLI) scheme for manufacturing, which has enabled India to be the "home to almost all the leading global mobile phone manufacturers," leading the country to turn from being an importer to an exporter of mobile phones.
"This trend is likely to spill over to other sectors also," he said, adding global players would help enhance India's share in the Global Value Chain (GVC) and will help build a resilient supply chain network. Such greater GVC participation would enhance the competitiveness of India's large and Micro, Small and Medium Enterprise (MSME) supplier base, the governor said.
However, it is necessary that the sectors and companies which benefit from this scheme "utilise this opportunity to further improve their efficiency and competitiveness. In other words, the gains from the scheme should be durable and not one off," the governor said.
He was delivering his keynote address at the National Management Convention of the All India Management Association (AIMA).
"India's financial system has transformed rapidly to support the growing needs of the economy," the said.
Banks traditionally have been the…