Mumbai: Minister of Finance Nirmala Sitharaman to India Inc.
on Tuesday that there is a step to enable the industry to meet the funding needs of the market rather than banks.
Among the steps of alternative financing, the government was looking at allowing insurance bonds instead of bank guarantees, said senior government officials.
During his first visit to Mumbai after the second wave of Pandemic, the Minister of Finance discussed industrial leaders in the Industrial Confederation Interaction (CII) on Tuesday night.
Then, he attended a dinner meeting with the Head of Industry, including Chairman of the Group N Chandrasan Tata.
FM said that the industrial dependence on the Bank will be increasingly reduced by the operationalization of new development financial institutions, which will take over long-term loans and also provide competition to the bank.
FM emphasizes the need for government and industry to work together to “create india equity capital itself”.
The meeting was attended by industrial leaders including the Veteran Banker Uday Box, Bajaj Finserv MD Sanjiv Bajaj and CEO of Steel Tata & President CII T V Narendran.
Industrial members seek clarity about startup taxation and problems related to the convenience of doing business.
In his speech, Narendran called for an increase in government spending because this was a direct source of request.
T v Somandangan, Secretary of Finance & Expenditure Secretary, said in his speech that there was a need for “behavior change” in an interesting trend on the arbitration award.
Tarun Bajaj’s income secretary said that the government was working on a tax-related startup problem and had been looking for input from the industry.