Modi Moves RBI To Support Developing Sectors For Economic Development

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Modi urges RBI to support emerging industries like space exploration, clean energy, and tourism for future economic growth.

Modi Moves RBI To Support Developing Sectors For Economic Development
Source: Google [Image by Indian Express]

PM Modi’s Direction to RBI

The Reserve Bank of India was told by Prime Minister Narendra Modi on Monday to consider ways to assist newly emerging industries like space exploration, clean energy, digital technology, and tourism in the days ahead, as they will have a lot of work to do once the new government takes office.

PM Modi’s Reflection and RBI’s Anniversary

“It’s hard to believe I’m already 100 days old. It’s bharpoor samay aap ke paas hai. For the next 100 days, I will be occupied with elections, so let’s see how this goes. Aap soch ke rakhiye, kyonki shapath lene ke doosare din hee dhama dham kaam kala hai. You possess sufficient time to reflect. The Reserve Bank of India (RBI) held its 90th anniversary celebration on Monday. “After taking the oath, a lot of work will come your way,” Modi said.

Focus on the Travel and Space Sector

Modi Focus on the significance of tourism by saying, “The entire world wants to come to India, wants to see India, and wants to understand India.” There are a lot of new startups emerging in the space industry as well. He stated, “We have to figure out how to satisfy their credit demand.”

Focus on Economic Independence

The Prime Minister further said improving India’s economic independence is necessary to protect the nation from negative developments occurring elsewhere in the world. We must achieve economic self-sufficiency in India within the next ten years. We need to work to ensure that the global crisis has far less of an impact on our economy,” he stated.

India’s Global Economic Significance

India is known as the world’s growth engine, accounting for 15% of the rise in GDP worldwide. “Under these circumstances, the focus should be on making the rupee more widely accepted and accessible worldwide,” he stated.

Efforts for Rupee Globalization

India wants the rupee to become international money. To quicken the pace of the rupee’s globalization, an Inter-Departmental Group (IDG) appointed by the RBI last year suggested a number of actions, such as adding the currency to the Special Drawing Rights (SDR) basket and recalibrating the foreign portfolio investor (FPI) system.

Acknowledgment of RBI’s Efforts

The RBI’s efforts to strengthen India’s banking industry and economy were commended by the prime minister. “Things were substantially different in 2014 when I went to the RBI’s 80th birthday celebration. Different issues were plaguing India’s banking industry. Everyone was skeptical about the stability and future of the banking industry because of the higher non-performing asset (NPA) levels of banks, he said.

Challenges Faced by Public Sector Banks

He claimed that because of the dire situation, public sector banks were unable to give the nation’s economic growth the necessary boost.

Government’s Strategies for Banking Industry Strengthening

According to Modi, in order to strengthen the banking industry, his government implemented the recognition, resolution, and reinvestment strategy. The government strengthened public sector banks’ governance by implementing numerous reforms and injecting capital totaling Rs 3.5 lakh crore into them.

Resolution of Bad Loans through IBC

Bad loans totaling Rs 3.25 lakh crore have been resolved just through the Insolvency and Bankruptcy Code (IBC). According to him, more than 27,000 applications with an underlined default of more than Rs 9 lakh crore were settled before being admitted to the IBC. Bank gross non-performing assets, or NPAs, fell below 3 percent by the end of September 2023 from approximately 11.25 percent in 2018.

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