PM Modi asks India Inc to increase their risk-taking appetite

Prime Minister Narendra Modi wants India Inc to take risk and invest more while industry wants a rate cut and improve the ease of doing business.

During a brainstorming session with industry leaders, bankers and economists at his residence on Tuesday, Modi urged business leaders to increase their risk-taking appetite and go in for more investment, especially in job-creating sectors, as the government takes steps to spur economic growth by spending more on building infrastructure and attracting higher flow of foreign capital.

India Inc came out strongly in favour of an interest rate cut to bring down the cost of funds and policy action to improve the ease of doing business. Senior Cabinet ministers, Reserve Bank of India (RBI) Governor Raghuram Rajan as well as top bankers and economists were also present at the meeting.

"In a nutshell, the participants at the three-hour long meeting analysed the recent global events, their impact on India and the opportunities in-built in the situation for India," Union Finance Minister Arun Jaitley told journalists after the meeting.

The PM stressed low-cost manufacturing and felt the strength of the economy lies in its huge human resource base, size of domestic market and that it is not entirely export dependent.

"He also emphasised the need to develop the small and medium enterprises (SMEs) sector and using MNERGA funds as a possible tool for skill development and using Mundra Bank for supporting the unorganised sector," Jaitley said.

Confederation of India President Sumit Mazumder said, "The Prime Minister has said that industry must take risk and increase investment ... we must go out and invest. Industry has a role to play."

Aditya Birla Group Chairman Kumar Mangalam Birla, Tata Group chairman Cyrus Mistry, Reliance Industries Chairman Mukesh Ambani, Sunil Bharti Mittal of Bharti Airtel and ITC Chief YC Deveshwar were among the industry leaders present at the meeting.