Principal Secretary P K Mishra said the financial system must move beyond short‑term credit, assessing cash flows and mobilising capital for infrastructure, manufacturing, urbanisation, energy transition and innovation.
On Wednesday, Principal Secretary to the Prime Minister P K Mishra told reporters that the financial sector should stop concentrating solely on financing near‑term growth and instead direct resources toward the next generation of Indian enterprises.
He said credit assessment must shift from a collateral‑centric model to one based on cash‑flow performance, and that the system needs to mobilise large pools of capital to meet the distinct financing needs of infrastructure, manufacturing, urbanisation, the energy transition and innovation, each requiring different forms of capital.
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Why This Matters
By reorienting credit assessment toward cash‑flow viability and channeling funds into long‑term sectors, the financial system can unlock the capital required for large‑scale infrastructure, manufacturing capacity, urban growth, clean‑energy projects and innovative ventures, thereby strengthening India’s economic foundation and reducing reliance on short‑term financing cycles. It also signals a need for varied capital instruments tailored to each sector, supporting the emergence of next‑generation enterprises that can drive sustainable growth.
