Prime Minister Narendra Modi urged the Reserve Bank of India on Monday to explore avenues to bolster emerging sectors such as space technology, green energy, digital innovation, and tourism in anticipation of forthcoming governmental duties.
Addressing the 90th anniversary celebration of the Reserve Bank of India (RBI), Modi emphasized the need for forward-thinking, stating, “I am preoccupied with election activities for the next 100 days. You have ample time to deliberate because substantial responsibilities will follow swiftly after the oath-taking ceremony.”
Highlighting the significance of tourism, Modi expressed India’s allure to global visitors, underlining the need to capitalize on this potential. He also emphasized the burgeoning space sector, noting the rise of numerous startups, and called for strategies to meet their financial requirements.
Modi stressed the importance of fortifying India’s economic self-sufficiency to insulate the nation from global uncertainties. “Over the next decade, we must strive for economic autonomy to minimize the impact of global crises on our economy,” he affirmed.
Acknowledging India’s role as a global growth engine, Modi advocated for enhancing the accessibility and acceptance of the Indian rupee on the international stage, aiming to establish it as a global currency.
Commending the RBI’s efforts in revitalizing India’s banking sector and economy, Modi reflected on the challenges faced in 2014, including high levels of non-performing assets (NPAs) and doubts about banking stability. He credited his government’s strategy of recognition, resolution, and recapitalization for the sector’s turnaround, along with the implementation of reforms to bolster governance.
Modi highlighted the success of the Insolvency and Bankruptcy Code (IBC), which facilitated the resolution of bad loans amounting to Rs 3.25 lakh crore. He noted a significant reduction in gross NPAs from around 11.25 percent in 2018 to below 3 percent by September 2023.
Emphasizing the transformative journey of India’s banking sector, Modi attributed success to clear policies, intentions, and concerted efforts. He lauded the widespread adoption of Jan Dhan accounts and Kisan Credit Cards, facilitating financial inclusion and rural economic growth.
Discussing digital advancements, Modi hailed the Unified Payments Interface (UPI) and emphasized the potential of artificial intelligence and machine learning in bolstering digital public infrastructure (DPI).
On inflation, Modi underscored the government’s proactive measures, including the inflation targeting framework and active price monitoring, which contributed to maintaining moderate inflation levels despite global challenges.
Modi concluded by emphasizing the need for continued efforts to propel India’s progress, asserting that a nation with clear priorities cannot be deterred.