New Delhi [India], January 9 (ANI): The PHD Chamber of Commerce and Industry (PHDCCI) on Friday outlined a comprehensive pre-Budget roadmap for the banking, financial services and insurance (BFSI) sector, calling for the creation of a dedicated green bank, stronger MSME credit flows, a modern bank resolution framework and further easing of doing business to support inclusive and sustainable economic growth, Gurmeet Chadha, Chair, BFSI Committee, PHDCCI, told ANI.

The recommendations emerged during an interactive session on 'Pre-Budget Expectations of the BFSI Sector - Policy Priorities for a Strong and Inclusive Financial Ecosystem', organised by PHDCCI's BFSI Committee at PHD House in New Delhi.

Chadha, who is also the Managing Partner and Chief Investment Officer at Complete Circle Wealth Solutions LLP stressed on the need for policy stability and predictable regulation.

'A stable policy framework, predictable regulation and capital market-led growth are essential to strengthening India's financial ecosystem. Robust capital markets play a critical role in mobilising savings, deepening financial inclusion and supporting long-term economic growth,' Chadha said.

During the same event, Abhinav Khandelwal, Senior Fund Manager at Aditya Birla Sun Life AMC, said improving macroeconomic stability, potential monetary easing and a revival in consumption-led growth could support Indian equity markets in the coming period.

Vishal Biraia, Vice President - Equities at Bandhan AMC, highlighted India's strong structural growth drivers and told ANI that The pace of fiscal tightening should be lower this year So in the last financial year, we discussed that it should be coming down from 4.8% to 4.4%.

'India's growth story remains intact, driven by domestic consumption, a manufacturing push and the formalisation of the economy. Capital markets have a critical role in funding entrepreneurship, MSMEs and infrastructure, enabling large-scale job creation,' Biraia said.

He also pointed to rising retail investor participation, growing SIP inflows and resilient equity markets as key enablers of India's transition into a mature and globally competitive capital market ecosystem.

A panel discussion held during the event focused on budget expectations, regulatory reforms, credit growth, ease of doing business and financial inclusion in the BFSI sector. Panellists stressed the need to improve credit flow to MSMEs, strengthen non-banking financial companies (NBFCs), deepen capital markets and enhance investor confidence.

One of the key recommendations was the establishment of a dedicated Green Bank or Climate Finance Facility to catalyse private investment in renewable energy, electric mobility, clean transport and transition finance for MSMEs, Ashish Agrawal, Co-Chair, BFSI Committee, PHDCCI & Director, Resurgent India Limited told ANI.

'As per MNRE plan till 2047, when we have aimed for becoming a Viksit Bharat, we need an outlay of $4.1 trillion dollars which is equivalent to 400 lakh crore rupees to generate ample energy from solar, wind and battery. For that, there is no money in the country so that this plan can be executed properly. The government should announce the green banks which can mobilise funds for this purpose,' Agarwal told ANI on the sidelines of the event.

Panelists also discussed that there is a need for a modern bank resolution framework, including higher deposit insurance coverage, faster depositor payout mechanisms and the creation of a credible resolution funding backstop to reinforce depositor confidence and financial stability.

On MSME financing, they called for reforms to SME securitisation, including standardisation of structures, removal of tax and stamp-duty frictions, and the creation of a government-backed credit enhancement facility to expand long-term credit availability.

Participants further discussed the growing importance of digital infrastructure, noting that India's digital economy and AI-led growth will significantly increase data centre requirements, creating new investment and employment opportunities. A national mission to combat digital fraud, including real-time intelligence sharing and coordinated recovery mechanisms, was also recommended.

To address rising funding pressures in the banking system, the session called for measures to strengthen deposit mobilisation, including enhanced tax incentives on savings deposits, rationalisation of tax-exempt term deposit lock-ins and tax benefits for RBI-compliant green deposit. (ANI)