Thakur flagged three priority areas within the sector for the joint action-strengthening the corporate bond market, taking instruments such as real estate or infrastructure investment trusts beyond their niche positioning, and giving a fillip to other pooled investment vehicles and to municipal bonds.
The financial sector, by channelising investments, remains central to the country’s resilience against disruptive US tariff shocks and geopolitical tensions, the secretary said.
These include prudent regulations, governance standards, gradual and controlled liberalisation, a strong banking system, deeper financial inclusion, a calibrated approach to foreign currency exposure, robust payments and digital infrastructure, diversified financial infrastructure and strong macroeconomic management.
Thakur dwelt on three major structural shifts in the financial system: the rapid financialisation of savings (assets under management of mutual funds surge even as low-cost deposits slow); a shift away from bank-dominated credit (banks’ share in total loans falling from 77% in FY12 to about 60% in FY22); and a sharp rise in equity market participation (IPO activity has jumped six times since 2013).