Capital market is the only way one can get household savings into productive assets and hence, public policy must include ways to make capital markets more efficient and transparent, said Suresh Prabhu, Minister of Commerce and Industry.

“Capital market is the only way you can get household savings into the most productive sources and most productive sectors,” Mr. Prabhu said, speaking at a gathering of stock brokers at an event organised by the Association of National Exchanges Members of India.

“The point is clearly established that we need most-efficient, well-entrenched and deep-pocketed capital markets for economy to grow and therefore we have to make sure any public policy must address this important issue of how to make capital markets efficient, transparent and forward looking,” Mr. Prabhu added.

The Minister, who also handles the Aviation Ministry, further said that while investment is necessary along with it, efficient use of capital is more important and there is no other way but capital markets that would ensure growth.

On a different note, the Rajya Sabha member said that the government wanted to focus on the districts as part of a bottom-up approach for boosting economic growth and that it has identified such districts across the States of Maharashtra, Andhra Pradesh, Bihar, Himachal Pradesh and Uttar Pradesh to begin with.

“We have focused on the macro and while that continues, now feel the need to also have the micro or the bottom,” he said.

$10 trillion GDP

The Minister said it is now a certainty that the country’s $2.6 trillion GDP will grow to $5 trillion in seven to nine years, and to $10 trillion by 2035.

The measures being undertaken to push growth at the district level are aimed at achieving the broader targets set earlier, he added while stressing that it is certain that the country’s $2.6 trillion GDP will grow to $5 trillion in seven to nine years, and to $10 trillion by 2035.

According to the Minister, India is now targeting annual FDI inflows of $100 billion and the government had identified the sectors which can attract the investments and also prepared a list of 150 global companies with huge cash piles.