New Delhi [India], June 2 (ANI): Industry leaders said on Tuesday that the banking and financial sectors need structural reforms to propel economic growth as the country aspires to become self-reliant in the face of coronavirus crisis and enters the 'Unlock Phase 1.'
The banking sector has loans of Rs 100 lakh crore and a capital of Rs 11 lakh crore to 12 lakh crore while the banking losses are about Rs 3 lakh crore to 4 lakh crore, said CII President-Designate Uday Kotak.
"Banks are in the business of banking but they are unable to lend. The banking sector needs recapitalisation of Rs 3 lakh crore to 4 lakh crore," he said while addressing the 125th annual session of the Confederation of Indian Industry (CII).
Kotak said the government, the industry in general and the financial sector are bearing the brunt of Covid-19 pandemic.
State Bank of India (SBI) Chairman Rajnish Kumar said the country needs to invest heavily in agriculture and infrastructure sectors. "Nearly 50 per cent of the population is dependent on agriculture but the investment is very minimal," he said.
Chairman of Piramal Group Ajay Piramal said the financial sector has lost 40 per cent market capitalisation in the past one year. The government, banks and regulators need to work together to turnaround the situation.
"For Atma Nirbhar Bharat, we need to create demand and then look at the opportunities worldwide. But if we take one year for policy implementation, then achieving the goal will be difficult," he said.
Chairperson of Biocon Ltd Kiran Mazumdar Shaw said India spends only one per cent of GDP on healthcare.
"If we increase the spending on healthcare, it may be the next IT sector of India. Healthcare has large employment opportunities and huge export opportunities as well. We need incentives like the IT sector was given in past."
In his address during the morning, CII President Vikram Kirloskar said the prolonged lockdown has dealt a huge blow to India's growth story. He was confident that the Indian industry will help the country overcome the crisis.