Arun Jaitley calls upon banks to increase private sector investments

Jaitley calls upon the banking sector to support corporates to propel growth

Finance Minister Arun Jaitley on Saturday said public and foreign investment remains intact, but private sector expansion is needed in a big way to let the 

economy start firing on all cylinders.

Observing that domestic investment continues to be a challenge, Jaitley called upon the banking sector to support corporates to propel growth.

The minister spoke of liberalisation of foreign direct investment policies because of which India has emerged as a preferred destination of foreign 

investment.

“Foreign investors are getting far greater returns on their investment here than in any other country,” he asserted.

“Public investment and foreign capital on which the economy is firing are intact... domestic investment is still a challenge.”

The minister further said there is a “silver lining” visible with festive purchases, indicating an 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.

The banks, Jaitley said, need to ensure flow of credit and support the private sector to expand their investment. He termed the role of the banks in this regard as “extremely significant”, while acknowledging that they have been facing a challenging situation in India.

Referring to unusual delays in the 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, Jaitley explained that delays in settlement of such cases hurt larger investment environment of the country as the funds blocked by defaulters could have been utilised by other borrowers for productive purposes.

"It is not a usual judicial or quasi-judicial procedure when endless opportunities have to be granted to people to defend cases... If natural justice is carried on to unnatural extent, the litigation will become unending and therefore efficiency has to be introduced into the recovery procedure as far as the defaulting parties are concerned," the minister added.