PM stresses role of financial markets in Indian economy


Raigad (Maharashtra), Dec 24 – Prime Minister Narendra Modi on Saturday stressed the crucial role played by financial markets for the growth of the Indian economy but warned of damages they can wreak if not properly regulated.

Prime Minister Narendra Modi
Prime Minister Narendra Modi

Inaugurating the new campus of National Institute of Securities Markets (NISM) run by the stock markets regulator Securities and Exchange Board of India (SEBI) at Panvel, Modi said India enjoyed a good name for its well-regulated securities markets and for them to function effectively, the participants needed to be well-informed.

“The government is very keen to encourage start-ups… Stock markets are essential for the start-up system,” Modi said.

Calling for wider inclusion, Modi said our markets must show that they were able to successfully raise capital for projects benefiting the vast majority of our population, particularly related to infrastructure.

“The true measure of success (of the stock markets) is in its impact in villages, not on Dalal Street or Lutyens Delhi. SEBI should work for closer link between spot markets like e-NAM and derivatives markets to benefit the farmers,” Modi urged.

Discussing the economic highlights, the Prime Minister said in less than three years, the government has transformed the economy.

“In 2012-2013, fiscal deficit had reached alarming levels, currency was falling sharply, inflation was high and current account deficit was rising.

“Now, we have slashed fiscal deficit, public investments have increased, FOREX reserves are high, inflation is low at less than four per cent compared to nearly double-digit in the previous regime,” Modi pointed out.

He said the government has progressed on ‘Ease of Doing Business’, the GST, pending since years, would soon be a reality and FDI has reached record levels, even “our critics acknowledge our speed of work”.

Modi made it clear that India has a bright future in the long run, and the government would not take decisions for short-terms benefits, and would not shy from difficult decisions if they were in the interest of the nation.

“My aim it to make India developed in one generation,” he concluded.

Earlier, Modi arrived in Mumbai by an IAF aircraft for a daylong visit to Maharashtra and has a series of engagements during the day.

On his arrival at the Chhatrapati Shivaji Maharaj International Airport around noon, he was received by Maharashtra Governor C. Vidyasagar Rao and Chief Minister Devendra Fadnavis.

Later, around 3 p.m., Modi will perform the ‘bhoomipoojan’, ground breaking ritual, for the ambitious sea memorial dedicated to Chhatrapati Shivaji Maharaj coming up in the Arabian Sea, around 1.5 km from Mumbai shoreline at Marine Drive.

Thereafter, Modi will go to the Bandra Kurla Complex and perform the ground breaking ritual for the mega-infra project, Mumbai Trans Harbour Link, two new Mumbai Metro lines and elevated road corridors.

In the evening, Modi is scheduled to visit Pune and lay the foundation stone for the proposed Pune Metro railway project.