Modi urges lenders to support rural economy and emerging businesses

NEW DELHI: Prime Minister Narendra Modi on Tuesday urged lenders to finance businesses in rural centers and projects aligned with national priorities such as net zero emissions, building health infrastructure, developing space industry , exports and startups.

In a virtual event on ‘Financing for growth and the ambitious economy‘ which focused on the implementation of the Union’s FY23 budget proposals, Modi outlined sectors that could boost the economy and help Indian businesses become global leaders, provided funding is provided. are available.

Modi said natural and organic farming, beekeeping, warehousing, food processing and agricultural logistics are areas of the rural economy that need support from financial institutions. The Prime Minister also said that with the right support, these sectors and others could produce champions who could find a place among the top three players in the world.

Modi’s call for financial institutions to support these emerging areas, including startups, exporters and sustainable infrastructure projects, signals the government’s eagerness to get the pandemic-battered economy back on track and to add much-needed jobs and livelihoods.

The role of financial institutions is key to achieving self-reliance, Modi said, referring to his government’s focus on creating infrastructure and developing the country’s most backward districts. In the eastern part of the country, endowed with natural resources, many improvements in economic development and infrastructure creation are possible, Modi said, stressing the need for project funding. Whether fintech or agri-tech, the pillars of Industry 4.0 must be prioritized, he said in a speech delivered in Hindi.

“Can we identify eight to ten of these sectors and make efforts on them, can’t India be among the top three in these sectors? This can be done in partnership with the private sector. Can’t there be construction companies in India among the top three in the world? In the number of start-ups, we are progressing. But in terms of quality, uniqueness and technology base, can our start-ups make it into the top three?” said Modi.

Modi said the government has opened up the drone, space and geospatial sectors. “It’s a game changer. Can’t we dream of being among the top three in these sectors? Can’t our institutions help them in this endeavor?”

For all of this to happen, it is very important that businesses coming into these sectors are proactively supported by financial institutions, the Prime Minister said, adding that financial institutions need to develop a deep understanding and capacity to respond to the requirements of these sectors. .

Modi urged financial institutions to bring their products to villages across the country while the government rolls out a fiber optic network and brings broadband to rural centers. He said banks need to prioritize them in their financial planning.

“Global warming is also a big problem. We have maintained the goal of net zero emissions by 2070. Work has begun in this direction. It is important to give impetus to environmentally friendly projects. Green finance is the need of the hour,” Modi said. He said building disaster-resilient infrastructure was an example of such projects.

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About Keneth T. Graves

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