CII Financing 3.0 Summit | Anantha Nageswaran: Long-Term Investment Crucial For Sustained Growth

At the CII Financing 3.0 Summit in Mumbai, Dr. V. Anantha Nageswaran, Chief Economic Advisor, addressed the nuanced impact of India's current financial boom. He emphasized that while the financial sector's growth and inclusion have been beneficial, the key lies in maintaining a balanced approach. Starting from a lower base, India's financialization has enhanced growth, but there is a potential risk of it becoming a growth drag if not carefully managed. Dr. Nageswaran highlighted the need for long-term investment horizons and prudent market practices to avoid the pitfalls of financial excesses, similar to those seen in the U.S. before 2008. The ultimate goal, he stated, is to ensure that the financial sector channels savings efficiently, supporting sustained growth in both the economy and the financial sector.