Attributing slowdown in the Indian economy to the global environment, the World Bank President, Mr. David Malpass, on Saturday suggested that further reforms and innovation will help spur growth.
He also said that innovation in the financial sector will be critical in achieving the Prime Minister, Mr. Narendra Modi’s goal of 5 trillion dollar economy by 2024-25.
Although India has made progress in the financial sector, there is scope for further improvement in the banking sector, shadow banking and the capital market.
'Encourage progress in three primary areas. One is to allow the growth of the banking sector itself, including the private sector. Second is deepening of corporate bond market and mortgage market and third is regulation of non-bank financial companies which have grown with the Indian financial system but entails some risks,' he said.