Sitharaman was addressing industry captains in Mumbai a day after she unveiled a Rs 6 lakh-crore national monetisation pipeline aimed at freeing up capital locked up in infra assets for further investments.
According to a statement issued by the finance ministry, Sitharaman told the industry that the government believes in listening, working and responding, and would extend all possible support.
FM praised the risk-taking abilities of startups as she urged the industry to come forward and take risks, promising to address issues related to competitiveness including high power tariffs, and cumbersome regulatory compliances, the statement said.
“The government is committed to working towards ensuring policy certainty. The regulators also had a key role in ensuring the same and the government is working with them as well on this important issue,” the statement quoted her as saying. The finance minister also emphasised the importance of government and the industry working together to “create India’s own equity capital”.
Expressing the government’s keenness to facilitate trends and sectors that are the future of the Indian economy, the minister acknowledged that there were seminal changes happening in the financial sector, which the government policy should facilitate.
“The economy is moving gradually from a bank-led lending model to a more market-based finance model,” she said, according to the statement.
Once the Development Finance Institution is operational, it will perform the function of long-term lending which traditionally has been done by banks. This, she said, would increase competition for banks and also improve their efficiency.
Finance secretary TV Somanathan said the government trusted wealth creators. Responding to suggestions from the industry, he said the government was exploring instituting insurance bonds as alternatives to bank guarantees.