India's Economic Ambition: Building Risk Capital for Growth

India is poised to become a USD 5 trillion economy but needs more risk capital to achieve this goal, according to City Union Bank MD and CEO N Kamakodi. He emphasized the challenge of low per capita income and stressed the importance of enhancing risk capital to support entrepreneurs.

India's journey towards becoming a USD 5 trillion economy faces a critical challenge: a lack of sufficient risk capital, despite having the overall capital to support growth. City Union Bank MD and CEO N Kamakodi highlighted this issue, pointing out low per capita income as a barrier due to India's large population.

Speaking at the Merchants' Chamber of Commerce & Industry event, Kamakodi urged entrepreneurs to take the lead while receiving support from bankers, emphasizing the crucial role of chambers of commerce in economic development.

He noted that while Germany and the US have reliable financing models, India should focus on enhancing its risk capital to achieve long-term objectives. State Bank of India General Manager Sanatan Mishra added that Indian banks are in a strong position to support growth, particularly with the advent of UPI which has improved financial inclusion.

(With inputs from agencies.)