Modi asks financial institutions to consider innovative financing for futuristic ideas

PTI, Mar 8, 2022, 2:45 PM IST

New Delhi: Prime Minister Narendra Modi on Tuesday asked financial institutions to consider innovative financing and risk management systems to support new futuristic ideas to meet the emerging needs of the economy.

Stating that implementation of green financing is the ‘need of the hour’ to meet net-zero carbon emissions target by 2070, Modi said financial help should be extended to environment-friendly projects.

”Our financing sector will have to consider innovative financing and sustainable risk management of new futuristic ideas and initiatives,” Modi said in a post-Budget webinar on ‘Financing for growth and aspirational economy’.

He said the success of the reforms undertaken by the government to strengthen MSMEs is dependent on strengthening financing for these sectors.

The Prime Minister also insisted that Industry 4.0 is not possible till the country moves ahead in the fields like fintech, agritech, meditech and skill development.

”Help of financial institutions in such areas will take India to new heights in Industry 4.0,” the Prime Minister said.

He also stressed on the need to identify 8-10 sectors, constructions, startups, recently opened up sectors like drones, space and geo-spatial data, in which India can be among the top-3 globally and asked the financial institutions to extend credit support.

”The expansion of entrepreneurship, innovation and search for new markets among the startups will happen only when there is deep understanding of these ideas of the future among those who finance them,” Modi said.

Referring to the work and investment in the health sector, the Prime Minister emphasized that in order to tackle the challenges relating to medical education, it is critical to have more and more medical institutions.

”Can our financial institutions and banks prioritize this in their business planning”, the Prime Minister asked.

Modi also said that if banks extend funding on a priority basis to exporters, it will make them strong and help in the Atma Nirbhar Bharat programme.

To promote organic farming, he said if someone is coming forward to do new work in natural farming, then it is necessary to think how financial institutions can help him.

Modi also nudged the bureaucrats to come out with ‘actionable solutions’ to implement the 2022-23 Union Budget proposals.