Technology and innovation key to inclusive growth of the financial sector: Mr. Vivek Joshi, Secretary, Department of Financial Services, Ministry of Finance 

A common taxonomy of jobs and skills required. Need to Address Skill Gaps: Arti Ahuja, Secretary, Ministry of Labour and Employment

Gati Shakti and National Logistics Policy: Two Game changing Initiatives: Sumita Dawra, Additional Secretary, DPIIT

A focus on financial sector reforms aimed at creating stability, resilience and efficiency in the financial sector, and based on technology and digitisation, would contribute greatly towards stimulating inclusive growth and help India to emerge as a developed country by 2047. This was stated by Shri, Vivek Joshi, Secretary, Department of Financial Services, Ministry of Finance, during the session on Strategizing India’s Prosperity: Next Gen Reforms at The Global Economic Policy Forum 2023 organized by the Department of Economic Affairs, Ministry of Finance, Government of India and the Confederation of Indian Industry (CII) today.

Mr Joshi further underpinned the significance of digital public infrastructure for promoting financial inclusion, citing the example of UPI as a game-changing initiative which has gone global; other initiatives such as PMJDY, Jan Dhan trinity; evolution of fintech, move towards formalisation of the economy; among others are other landmark reforms. For the MSMEs, schemes such as the mudra scheme, CGTMSE, ELGLS would go a long way to address their credit related concerns. Cyber security and protection of digital public infrastructure is an area of concern for which expenditure on financial security should be scaled up and attention be given to data protection as given in the Data Protection Act, he added.

On his dream for 2047, Mr Joshi based his vision on the rich macro fundamentals which would lead to a rise in per capita income, a robust financial services sector with a highly competitive banking sector with India’s global footprint across continents; lower intermediation costs; efficient access to MSME credit; deepened stock, bond and commodity market; data driven financial system etc. 

The roadmap for 2047, included average growth of 7-7.5%; rise of domestic savings to 31% of GDP; rise in credit to GDP ratio to 130%, among others. He emphasised on the increased use of AI, decentralised financing, data-based lending, emergence of India as a fintech nation, among others.

Ms. Arti Ahuja, Secretary, Ministry of Labour and Employment, Government of India highlighted the three major global trends which were impacting the world and would have a spill-over impact on India. This includes the process of aging and demographic change which has increased the demand for geriatric care, fuelled the demand for social security and also resulted in labor shortage due to which countries are cutting public services.

Second, new kinds of jobs being created and the increased reliance on AI. While AI is rationalising jobs in a few sectors, it is also helping humans to improve their competitiveness. Third is the mainstreaming of the provision of decent work practices in the global value chain. Trade and labour welfare are now intrinsically linked such as in signing FTAs.

For what needs to done Ms Ahuja stressed on five initiatives. These include stress on agility of workforce and adjustment to new job creation for which a common taxonomy of jobs and skills is required as suggested in G-20; to encourage mobility of workers to where there are skill gaps; accent on formalisation; provision of social security and mapping its coverage; and lastly rationalisation of the inspection system.      

Commenting on logistics, Ms. Sumita Dawra, Special Secretary (Logistics), Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India highlighted the two recent reforms i.e. the PM Gati Shakti Master Plan, a GIS mapped, data driven and scientific system, which identifies the infrastructure gaps and addresses the same through inter-ministerial coordination and secondly, the National Logistics Policy.

Mr Sanjiv Bajaj, Past President, CII stressed on the need for gen next reforms such as a focus on quality infrastructure; broadening the tax base; creating a roadmap for disinvestment; reducing cost of doing business; operationalising four labour codes, among others. 

8 December 2023

New Delhi