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.