State Bank of India (SBI) Chairman CS Setty said on Monday that the country may need capital investment worth around Rs 3,000-3,500 lakh crore to achieve its ambition of becoming a $30-trillion economy by 2047, when the government aims to make transform it to ‘Viksit Bharat’ (Developed India). He also emphasised that India’s investment rate may need to rise meaningfully from current levels to sustain long-term high growth needed for the Viksit Bharat goal. For that mission alone, said Setty, nearly Rs 600-650 lakh crore in capital may need to be mobilised by 2035.
Noting that such funding requirements cannot be fulfilled through banks alone, the SBI chairperson said that deepening the country’s bond market will be crucial for funding the real economy. The country’s capital markets, equity and bond markets in particular, will have to play a far larger role alongside banks in financing its growth ambitions.
His broader remarks signalled that the domestic financial ecosystem has yet to evolve substantially to support the transition towards a developed economy by 2047.
