Terming the budget presented by finance minister Nirmala Sitharaman as "progressive", Prime Minister Narendra Modi today said that the financial system must look at innovative and sustainable financing for the emerging sectors of the economy like space, geo-space, drones, start-ups, exports and green financing while at the same time hand holding the rural economy.
Addressing the post budget seminar on financing for growth and aspirational economy today, PM Modi said, "Finance minister Nirmala Sitharaman has presented a progressive budget to the country. Amid the largest pandemic in a hundred years, the economy is gathering pace again. This is a reflection of the economic decisions of the government and also the strong foundations of the Indian economy."
PM said the budget has taken multiple measures to continue with the growth momentum. "By encouraging foreign capital flows, lowering taxes on infra investment, and setting up NIIF and GIFT city like institutions, we have tried to provide an impetus to the financial economic growth. Government's commitment to proliferate digital technology is reaching the next level," PM Modi said.
PM Modi urged the financial sector to prioritise financially viable models in all the priority sectors, cater to the aspirations of the country, and also called for different funding models for the Aatma Nirbhar Bharat initiative. Modi added that the financial system has a central role in the PM Gati Shakti Master plan. Gati Shakti is the initiative announced by the government for integrated infrastructure in the country.
Modi also asked the financial sector to proactively build capacity in the sectors that have been opened up by the government. "We have opened up the drone, space and geo-spatial sectors. These are game changing policy moves. Can all the institutions not come forward and help them? Financial sector needs to be proactive and build capability to fund startups who come forward in the drone and space sector. The financial sector needs to focus on innovative financing and sustainable risk management in funding these sectors," Modi said, urging them to develop a deep understanding of the futuristic areas of development.
PM Modi also listed the financial needs of the exporters and asked the institutions to align their products and services with the needs of the exporters and called for higher funding in the rural segment, health infrastructure and green financing.