You are here: Home » Budget » Economic Survey » Top Stories
Business Standard

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.

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

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

Read our full coverage on Union Budget

"Healthy competition from capital markets 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 funding such as capital markets.

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.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

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