Right policies can bring in more money to financial mkts

The inflow of savings from Indian households into the Indian financial markets is likely to increase if the country has the right policies and a much bigger private sector according to Union Finance Minister Arun Jaitley.

“Currently 2.5 per cent of the household savings are invested in the financial markets. This figure is to expand, which it should. For that, India needs a much bigger private sector which will mean more investments from foreign investors,” Jaitley said while speaking at an event to mark National Securities Depository’s custody value crossing Rs 100 lakh crore ($1.5 trillion).

Policy domain also needs to create space and an environment where such investments are attracted, Jaitley added. According to Jaitley, India can certainly grow at nearly 9-10 per cent if the right changes are made. “The world is passing through challenging times. What is gloom for some countries is not gloom for India, it becomes a boom for us. If this regime continues, it is our moment to grow,” Jaitley said.

“Our export market is slow and going down as buyers are slowing down. Private sector investments are low and the taxation system needed serious changes. If despite this, India can grow at seven-eight per cent, then given a situation where adversities do not exist, to get that one-two per cent extra is a reasonably foreseeable task,” Jaitley added.