New Delhi: RBI Governor Shaktikanta Das said on Thursday that consumption and investment demand are increasing steadily and the country is moving on the path of sustainable growth. He said that reforms like GST and 'Insolvency and Bankruptcy Code' (IBC) have brought long-term positive results. He also emphasized the need for more reforms in land, labor and agricultural markets. In his inaugural address at the annual FIBAC, 2024 conference jointly organized by FICCI and IBA, Das spoke on the issue of strengthening the financial sector and expectations from them.

India's growth story continues

Das said that there are major changes taking place in various economic sectors and markets and the country is ready for these changes. Das said, 'Our country's journey towards becoming an advanced economy is being strengthened by a unique mix of many factors. These factors include young population, aggressive and diverse economy, strong democracy and rich tradition of entrepreneurship and innovation.' He emphasized that India's growth story is intact and the banks' books are strong. Das urged the private sector to increase investment on a large scale. The Governor said that the data shows that the basic growth factors of the Indian economy are actually gaining momentum and they are not slowing down.

Das said, 'This gives us the courage to say that the Indian growth story is intact.' The governor said that the right balance is being maintained between inflation and growth. The food inflation scenario may be more favorable due to better monsoon and good sowing of Kharif. He said that the government expenditure of the central and state governments is likely to pick up pace in line with the budget estimates in the remaining quarters of the year, in such a situation, the RBI's estimate of 7.2 percent GDP growth for 2024-25 does not seem absurd.

Increase the reach of digital platforms

Das said the financial sector should increase access to and use digital platforms to promote inclusive growth. He also advocated offering products and services tailored to women-led businesses and micro, small and medium enterprises (MSMEs) without weakening risk assessment standards. Das said only regulated entities will be allowed on the 'Unified Lending Interface' (ULI) platform to ensure prudent lending. Das said, "ULI will not be a 'club' of a few select companies."

Banks should give more employment to women

RBI Governor Shaktikanta Das said the financial sector can help reduce gender inequality by providing more employment opportunities to women and special schemes for women-led enterprises. He said a developed India must ensure that every citizen, irrespective of their socio-economic status, has access to financial services and acquires the necessary financial literacy.

He said that women's participation in the labour force in India is much lower than the global average. To reduce this gap, efforts will have to be made towards girls' education, skill development, safety at workplace and removing social barriers.