‘We need to improve the credibility and integrity of our market institutions, the regulators, corporates to attract more retail funds into the market’
Finance minister Arun Jaitley on Saturday called for improving the credibility and integrity of all market participants, including regulators and corporates, to channel more household savings into the system.
“Though we have covered a reasonable distance in terms of financial market development, there is still a long way to go in terms of market depth. We need to improve the credibility and integrity of our market institutions, the regulators, corporates and other market-makers, to attract more retail funds into the market,” Jaitley said.
Addressing an event organised by the National Securities Depository Limited in Mumbai, the finance minister said, “It is obviously necessary that individual savings, either through the banking system or through the capital markets, get into economic activity. There is a third core sharer of those savings, which is gold, and we are increasingly trying to persuade people to buy as little of it as possible,” Jaitley said.
The minister said though in comparison to most other nations, our household savings at 30% are good, going by our conservative spending, we can still have a considerably high level of savings and a good portion of that can be brought into productive investments.
Stating that while most of the world is facing a gloom scenario, he said “their gloom is our boom”, though he noted that exports are a concern for the government.