'Boosting consumption demand is need of economy'

'Boosting consumption and reviving demand is need of economy'

By Rajiv Sabharwal,

 

“Boosting consumption and reviving demand is the need of the economy at this moment. Though the government and RBI has consistently taken measures to facilitate this, providing higher tax benefits and incentives will leave more disposable income in the hands of individuals and thus encourage spending and demand. Further NBFCs with a strong parentage should be allowed to access Public deposits. This will help credit growth and diversify the borrowing profile of NBFCs. Reviving stalled projects, regulating consultative mechanism of RBI, reducing the limit of 1 crore and treating NBFCs at par with banks with respect to SARFAESI and amendments to rules relating to external commercial borrowings are some other reforms that the government can bring in that will accelerate the growth of the sector in India. “

 

(The writer is the MD and CEO, Tata Capital)