Finance Minister Arun Jaitley has said that private sector expansion is needed in a big way to let the economy start firing on all cylinders. He said that public investment and foreign capital on which the economy is firing are intact and domestic investment is still a challenge. After monitoring that the domestic investment still continues to be a challenge, he urged the banking sector to support private investment in order to push growth.
Jaitley emphasized that foreign investors are getting far greater returns on their investment in India than any other country. He further said there is a ‘silver lining’ visible with festive purchases, indicating upturn in rural and urban demand, but domestic investment will have to pick up in a big way for which banks need to do their bit by supporting corporates and thus boosting growth. He termed the role of the banks in this regard as ‘extremely significant’ as their credit and investments have to pick up.
On unusual delays in settlement of debt recovery cases, the minister pointed to the need for increasing efficiency in such matters that are adjudicated by judicial or quasi-judicial bodies. Stressing that debt recovery is of prime importance to the Indian economy, the minister explained that delays in settlement of such cases hurt larger investment environment of the country as the funds blocked by defaulters could have been utilized by other borrowers for productive purposes.