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Capital markets may be used as major source of funding: Eco Survey

Healthy competition from capital markets is essential too which will require policy support, said the Survey

Press Trust of India  |  New Delhi 

Arun Jaitley
Finance Minister Arun Jaitley speaks in the Lok Sabha in New Delhi.

can be used as a major source for meeting requirements of the country to reduce dependence on banking channels, the suggested today.

Stressing on a need to diversify within and outside the banking system, the survey said that "more and more kinds of must be encouraged", but there is a need to develop alternative sources..

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"Healthy competition from is essential too which will require policy support," it said.

Looking at the global trend, the survey observed that that banking credit should shrink in size over the course of development relative to other sources of such as

However, it said that India is neither over-banked nor are its capital markets too small at this stage of development.

"That will have to change over time and the policy conditions should facilitate that transition but for the moment India is not an outlier," the survey for 2014-15 added.

First Published: Fri, February 27 2015. 14:57 IST