Prime Minister Narendra Modi on Friday insisted on increasing the flow of credit to businesses to meet the needs of a rapidly growing economy and underlined the need for new financial products.
Private companies are encouraged wherever possible, but at the same time, effective public sector participation in banking and insurance is still needed for the country, he said. Speaking during a webinar on financial services budget announcements, Modi said the Center has a clear vision for the financial services industry and is taking steps to make it vibrant, proactive and strong.
The Prime Minister said the government understands the ups and downs facing businesses and will support honest decisions. “The responsibility of the government is to support all these business decisions made with good intention and I want to tell everyone in the financial sector that I will be by your side for all decisions made with honest intention,” he said. added.
Modi pointed out that several budget announcements, including the privatization of two public sector banks, allowing up to 74% foreign direct investment in the insurance sector, the listing of Life Insurance Corporation on the stock exchange aim to strengthen the financial sector.
“Steps have been taken to get the country out of the non-transparent credit culture,” he added.