Left Menu
Development News Edition

India needs external capital flow to grow at nine per cent: SBI Official

PTI | Beijing | Updated: 05-08-2019 17:00 IST | Created: 05-08-2019 17:00 IST
India needs external capital flow to grow at nine per cent: SBI Official

India's economy needs external capital flow to grow at nine per cent and touch USD five trillion in the next five years, C Venkat Nageswar, Deputy Managing Director, International Banking Group of the SBI said on Monday. Nageswar is currently visiting China to interact with various Chinese regulators and officials of Asian Infrastructure Investment Bank, the New Development Bank of the BRICS countries to discuss cooperation with the State Bank of India.

"We are looking at seven per cent growth for the current financial year for the Indian economy. We are expecting inflation to be very benign. Our estimate is there is every possibility it will touch USD five trillion in the next five years," Nageswar told the media here. "It is doable. We need to grow at nine per cent to achieve those numbers. Tt is possible and we are confident," he said.

"But in order to grow at nine per cent India needs capital. If we are looking for five trillion-dollar growth in the next five years, there is going to be deficit in the capital requirements. We need external capital to come," he said adding that recently the Reserve Bank of India has relaxed regulations for the banks to attract more capital. He said there was a good amount of liquidity globally.

"Here is the only real economy giving good interests rates. Therefore, we are looking for liquidity to flow into India," he said. Outlining the reasons for slowdown in the economy, he said economies across the world have slowed down.

"We have crude prices which are extremely volatile, uncertainties in the world such as US-China trade war and Brexit," he said, adding that these uncertainties are impacting the Indian economy. "One of the positive thing in India is the monsoon is good and we are expecting rural economy to pick up and therefore slowly you will see economy coming back to normalcy," he said.

About concerns related to job growth, he said as per the study conducted by SBI chief economist, "there was a small disruption in the small and medium enterprises during post demonetisation. But slowly the digitisation is picking up in the country. The employment is limping back to normalcy." Nageswar also met Indian Ambassador Vikram Misri here Monday and discussed the SBI's operations in China.

The SBI currently has branches in Shanghai and Tianjin cities with a total turnover of USD 700 million. The Tianjin branch is being closed down as part of the attempts by the bank to consolidate its operations, Nageswar said.

The consolidation was aimed at increasing SBI’s to market share and trade finance. "For SBI China the basic business is India-China trade . Mostly ours focus is on trade finance," he said, adding that his visit is aimed at how the bank will support trade transactions.

The bank hopes to cash on the growing India-China trade which last year totalled to over USD 95.5 billion amid expectations that it would cross USD 100 billion this year.


TRENDING

OPINION / BLOG / INTERVIEW

South Africa's COVID-19 response: Surprising outcomes or just poor data management?

South Africa has been committed to improving its health information system and shows that a robust digital has considerable scope to improve healthcare for the entire population. But the COVID-19 pandemic has highlighted that significant ga...

Post-COVID-19 Nigeria needs a robust Health Management Information System to handle high disease burden

Nigeria is among a few countries that conceptualised a health management information system HMIS in the early 90s but implementation has been a challenge till date. Besides COVID-19, the country has a huge burden of communicable and non-com...

Morocco COVID-19 response: A fragile health system and the deteriorating situation

Learning from its European neighbors, Morocco imposed drastic measures from the initial stages of the COVID-19 outbreak to try to contain its spread. The strategy worked for a few months but the cases have surged after mid-June. In this sit...

COVID-19: Argentina’s health system inefficiencies exaggerate flaws of health information system

You can recover from a drop in the GDP, but you cant recover from death, was the straightforward mindset of Argentinas President Alberto Fernndez and defined the countrys response to COVID-19. The South American nation imposed a strict...

Videos

Latest News

Pelosi, Mnuchin meet in bid to reach U.S. COVID-19 relief deal

U.S. House of Representative Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin met on Wednesday in a bid to broker a bipartisan deal on stalled COVID-19 relief legislation ahead of the Nov. 3 election. As the House stood poised to ...

COVID SCIENCE-Neanderthal genes linked to severe COVID-19; Mosquitoes cannot transmit the coronavirus

The following is a roundup of some of the latest scientific studies on the novel coronavirus and efforts to find treatments and vaccines for COVID-19, the illness caused by the virus.Neanderthal genes linked with severe COVID-19 A group of ...

Faith group deletes mentions of Barrett from its website

A religious organization tied to Amy Coney Barrett, President Trumps Supreme Court nominee, sought to erase all mentions and photos of her from its website before she meets with lawmakers and faces questions at her Senate confirmation heari...

Bihar polls: Talks with Grand Alliance fruitless, CPI(ML) to contest 30 seats in phase one

All efforts to rope in the CPI-ML in the RJD-led Grand Alliance in Bihar seem to have failed, with the left-wing party on Wednesday announcing that it would contest 30 of the 71 seats which would go to polls during the first phase of Assemb...

Give Feedback