Finance minister Pranab Mukherjee on Saturday said India will require to develop rupee denominated long-term bond market since it will help fund India?s much needed infrastructure development requiring investment of $459-$500 billion by 2012.
Mukherjee addressing a power session of the Institute of Company Secretaries of India said the Indian capital market, which has been instrumental in the country?s economic growth, has given birth to demutualisation of stock exchanges and was the first to use satellite-based communication.
The present requirement was however the growth of a strong debt market to fund India?s infrastructure growth.
? India needs $ 459- $ 500 billion investment by 2012 to yield to the shortage of infrastructure and a substantial part of it will come from the bond market. It is vital for India to develop rupee denominated long term bond market,? Mukherjee said.
Multi Commodity exchange managing director and chief executive officer Jignesh Shah, who was also present at the programme, said revival of regional stock exchanges was also important for the country?s economic growth.
According to Mukherjee, the country was carrying out the process of getting into the ?next generation financial system? and two reports on reforming the Indian capital market and making Mumbai an international financial centre was already with the government.
He said the DTC and the GSTC were great steps toward financial reforms in India but while DTC was a Union government affair, GSTC was a concurrent subject requiring the states to reach a consensus with the Union government.
He however did not mention if there were any problems arising in creating a consensus between the Centre and the states on GSTC.
Mukherjee later in a Yes Bank programme in the city said the recent growth trend was likely to ensure double digit growth by the end of the 11 th plan period.