Study and implementation of green financing and such new aspects need of the hour, says Modi

New Delhi, March 8, 2022

Prime Minister Narendra Modi today said the study and implementation of green financing and such new aspects were the need of the hour when the economy was showing signs of recovery and growth after the pandemic.

Addressing a post-Budget webinar on "Financing for Growth & Aspirational Economy", Modi referred to the environmental and ecological dimensions of the Budget. He said the work has already started to achieve India’s goal of net-zero by 2070.

“To speed up these works, it is necessary to accelerate environment-friendly projects. Study and implementation of green financing and such new aspects is the need of the hour,” he added.

The economy was once again picking up momentum after the once-in-a-century pandemic and it was a reflection of economic decisions and the strong foundation of the economy. The government has taken many steps to maintain the momentum of high growth in this budget, he said.

“By encouraging foreign capital flows, reducing tax on infrastructure investment, creating institutions like NIIF, GIFT City, new DFIs, we have tried to accelerate financial and economic growth,” he said.

“The country's commitment to the widespread use of digital technology in finance is now reaching the next level. Be it the 75 Digital Banking Units or Central Bank Digital Currency (CBDCs) in 75 districts, they reflect our vision,” he added.

Referring to the Aatmnirbhar Bharat Abhiyan (Self-Reliant India campaign), he stressed the need to consider ways of reducing dependence on other countries by exploring different models of financing the related projects. The PM Gatishakti National Masterplan was one such step.

For a balanced development of the country, he said priority was being given to schemes such as the Aspirational Districts Programme and the development of eastern India and the North East.

He stressed the link between India’s aspirations and the strength of the MSME sector. “We have implemented many fundamental reforms and made new schemes to strengthen the MSMEs. The success of these reforms is dependent on strengthening their financing,” he added.

The Prime Minister insisted that Industry 4.0 was not possible till the country moves ahead in the fields like Fintech, Agritech, Meditech and skill development. The help of the financial institutions in such areas will take India to new heights.

Modi talked at length about the vision of finding sectors where India could figure in the top three countries. He asked whether India could emerge among the top three in construction, startups, the recently opened up sectors like drones, space and geo-spatial data.

“For this, it is imperative that our industry and start-ups get full support of the financial sector. The expansion of entrepreneurship, innovation and search for new markets among the startups will happen only when there is a deep understanding of these ideas of future among those who finance them.

“Our financial sector will also have to consider innovative financing and sustainable risk management of new futuristic ideas and initiatives,” he emphasized.

Pointing out that the rural economy was the big base of the Indian economy, he said the Government was taking steps like strengthening the SHGs, Kisan Credit Cards, Farmer Producer Organisations and Common Service Centres. He asked the gathering to keep the rural economy at the centre of their policies.

“India’s aspirations are also linked with natural farming and organic farming. If someone is coming forward to do new work in them, then it is necessary to think about how our financial institutions can help him,” he added.

Referring to the work and investment in the health sector, the Prime Minister noted that to tackle the challenges in medical education, it is critical to have more and more medical institutions.

“Can our financial institutions and banks prioritize this in their business planning?” he asked.

NNN