“We do not expect to see growth dip to lower rates again after delivering 7 per cent growth for several years,” Seth said in his farewell address at a Confederation of Indian Industry (CII) event in Mumbai.
“What we are pursuing is to grow at that rate. At least 7%, maybe 7.5%, maybe 8% in a few years, and to sustain that for the next 20 years (to achieve the goal of becoming a developed India by 2047).”
The International Monetary Fund (IMF) has projected that India will remain the world’s fastest-growing major economy in the current fiscal year and next, with growth rates of 7% and 6.5% respectively, more than double the global average.
The minister called for “deepening and expanding” the corporate bond market, expanding access to insurance, pensions and capital markets products, and improving the quality and efficiency of financial services to reduce intermediation costs.
He said more than 98% of corporate bond issuances are private placements. More than 80% of issuances are AAA rated. “That means a very broad range of economic entities are not able to tap into the bond market, and (deepening the bond market) requires growth of more than 7% over 20 years,” he said.
