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While chairman and chief executive of Barclay's Asia Pacific region, Robert Morrice stressed on India's need to strengthen its asset management businesses in order to cash in on private foreign capital, global CEO of Deloitte, Jim Quigley, said that India needed to provide a more friendly-environment for FDI. "Capital goes where it is most welcome," said Quigley.
Bank of America Merrill Lynch country head Kevan Watts seconded the recommendation on the need for India to deepen its capital market by looking inwards and by reforms in the banking sector. "I was happy to hear that prime minister Manmohan Singh talk about financial sector reforms, but the object of the reforms is to make the financial sector recycle Indian capital into Indian investment," said Watts.
Ashok Jha, chairman of MCX-SX, said that while India enjoyed a high domestic savings rate -- which grew from 30 per cent until five years ago to under 40 per cent -- the savings weren't channelised productively. "If more people participate, India's growth rates will be much higher," said Jha.
Since the Indian ecomomy depended less on foreign capital flow and more on domestic saving, Jha made a case for harnessing and capitalising on the high savings rate. India has only 15 million DMAT accounts, while the tax payer base is 40 million, he said.
"But, having said that, FDI too has a special role to play in economies. It brings in more money, newer technology and better forms of management," he said.
