1 hr ago

PK Mishra Urges India’s Financial System to Manage Growth Risks

PK Mishra said India’s banks and financial markets must help the economy grow faster.

He also warned that India should not become too comfortable because global risks remain.

These risks include changing alliances, dependence on imports, pressure on foreign payments and artificial intelligence.

Mishra said banks alone cannot provide all the money needed for growth.

More investment should come from bond markets, stock markets and large financial institutions.

He said banks should judge businesses by whether they can generate money, not just by the property they offer as security.

India should make more components and design more products instead of only assembling finished goods.

Challa Sreenivasulu Setty said new industries such as renewable energy and semiconductors could attract major investment.

Key facts

India’s first-quarter growth: 7.8 per cent, according to PK Mishra.
Risks identified: Fragmented global alliances, import dependence, pressure on external accounts and artificial intelligence.
Financing need: India needs deeper bond and equity markets, larger institutional investors and infrastructure funds.
Credit assessment: Mishra recommended judging projects by their cash-generating ability rather than primarily by collateral.
Production strategy: India should move beyond final assembly toward component manufacturing and product design.
Highlighted sectors: Renewables, semiconductors, battery storage, green hydrogen, precision robotics, biotechnology and frontier project technologies.

deccanchronicle.com · 1 hr ago