Union Minister of State for Skill Development & Entrepreneurship, Electronics & IT, and Jal Shakti, Shri Rajeev Chandrasekhar, addressed the India Banking Conclave organized by the Council for International Economic Understanding today. He highlighted that the structural reforms in India's financial and banking sector over the past decade have significantly contributed to the country's overall economic growth, offering unprecedented opportunities for startups. The Minister also emphasized how the growth in the financial sector aligns with the goal of achieving “Viksit Bharat 2047” set forth by Prime Minister Shri Narendra Modi.
Drawing a contrast between the present and a decade ago, Minister Chandrasekhar said, “As of 2024, we are actively working towards the goal of a 'Viksit Bharat' outlined by our Hon’ble PM Narendra Modi ji. Reflecting on the past, I recall raising issues in the parliament about the banking sector in India 10 years ago, pointing out a report by Credit Suisse called 'House of Debt,' which revealed the dysfunctionality and concentration of risk in the Indian financial sector in 2012."
He further explained, “Back then, ideas and determination existed, but credit and capital were impossible to get. Over the past 10 years, India has undergone a transformation in entrepreneurship, economic and infrastructure growth, governance, and political culture, owing to the Modi Government's tectonic, deep structural change in Bharat, particularly in the financial sector. The financial sector is the catalyst, the foundation, the fuel for an economy that is reimagining its ambitions."
Elaborating on qualitative and quantitative changes, the Minister stated, “Today, we have an inclusive financial sector, with tech and UPI facilitating the disbursal of micro loans. The borrower ecosystem has expanded significantly, contributing to growth, investment, and job creation not only in conventional industries but also in entrepreneurship. The ecosystem of borrowers has expanded from mere 9-10 groups to a larger ecosystem and that is why today a large part of our growth, large part of our investment and job creation are not just coming from conventional industries but also from the phenomemon of entrepreneurship. We now have more than 1 lakh startups today, and close to 111 unicorns who are not known to have a godfather to get capital; they have raised capital without resorting to the old banking models of the past. Quantitatively, the bank population and the financial sector in India have significantly expanded, with higher figures in Credit to GDP and financial sector size to GDP than in 2014."
Highlighting the hallmark of the Narendra Modi Government in crafting policies, Minister Rajeev Chandrasekhar emphasized, “Our PM stresses that policies should only be crafted after extensive consultations, discourse, and engagement with all stakeholders, regardless of size, location, or gender. The tech sector policies in India have been developed through such extensive consultations, ensuring they are future-ready, such as the DPDP or the IT rules."
Regarding the importance of guardrails for innovation and safe digitization, he added, “As we move forward, it is crucial to ensure that the internet should remain safe and trusted for all digital nagriks. Our government firmly believes in creating guardrails for every tech-related innovation to ensure legal accountability, whether in fintech or other platforms.”