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Budget Expectations: BCT Digital CEO on Banking, Climate Change, and SME Growth

business Jan 21, 2025

By – Jaya Vaidhyanathan, CEO, BCT Digital

jaya

With uncertain global economic conditions there is a need in India to boost domestic drivers for economic productivity and that’s going to come from two areas.

One is to boost domestic consumption and the second is to look at the investment landscape. So, from an investment landscape there are a few things that we, practitioners in the banking sector, are aspiring for from the Union Budget 2025.

GST data is going to have an immense potential for precise credit assessment and risk monitoring. Passing the Data Protection Bill will ensure data sharing among regulators, financial institutions and key stakeholders.

Over-reliance on credit guarantees and loan-waivers is bound to undermine our lending practices. The transition to cashflow-based lending will create a more robust credit ecosystem.

To meet global climate goals, sustainable finance is crucial. The government must first establish a comprehensive ‘climate taxonomy’ that defines what constitutes ‘sustainable investment.’ This would facilitate the allocation of incentives and benefits to projects that align with these criteria.

Finally, the PLI programmes have successfully revitalised select segments of the manufacturing industry. However, scaling these initiatives is vital. We must enable supply chain partnerships through corporate partnerships that will empower SMEs and accelerate sectoral growth.