“The kind of requirement that the economy has in terms of infrastructure investments, we have to open up capital markets and encourage more foreign participation. We have started some kind of foreign participation in the current year,” Khara further said.
Commenting on the need for a development finance
institution (DFI), Khara said even if a DFI comes in, the source of funds will have to be more international than what it used to be earlier, when they got money from the government.
“All this while, the domestic market and household savings were the major source of savings of the economy. That kind of savings may not be enough for the growth trajectory we have chalked out for ourselves,” he added.
Experts also suggested that a regulatory body can be created that will have members from the Sebi, RBI, Irdai, and PFRDA, and any large regulatory body concerned with investments. And, authority should be given to this body to take decisions regarding innovation in capital markets.
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