MORE: Sinha Says India Needs Lower Interest Rates for GDP Growth

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Nation needs to switch gears into a growth-oriented stance, Junior Finance Minister Jayant Sinha says in interview to Bloomberg TV India.

  • It’s for the RBI to decide on interest rates
  • India needs $1t of infrastructure spending over the next five to 10 yrs
  • 1t rupees ($15.7b) of infrastructure due in India this yr alone
  • Seeking to even out burden of financing infrastructure away from state-run banks
  • Govt wants to spread out long-term infra financing
  • FDI in manufacturing increased 40% in last year
  • India needs a healthy banking sector for 8-9% GDP growth
  • State banks are run autonomously; looking to boost talent at PSU banks
  • India Bank Bureau a precursor to bank holding co.; state banks may divest non-core assets, consolidate
  • Capital requirements at banks won’t become urgent for 12 mos
  • Aim is to bring fiscal deficit to 3% in medium term, seeks nil revenue gap
  • NOTE: RBI reviews monetary policy Tuesday; most analysts in survey expect cut to 7.25% from 7.5%
  • Related stories:
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    • Rajan Rate Cuts Lose Sway as India Bond Traders Scan Rain Clouds Link

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