Particle.news
Download on the App Store

PHDCCI Sets Pre-Budget BFSI Agenda, Presses for Privatisation Signals, Green Bank and MSME Credit Reforms

The chamber’s recommendations have been submitted to the finance ministry as inputs for Budget 2026 decisions.

Overview

  • India’s industry body seeks deeper divestment of public sector enterprises and clearer plans to reduce government stakes in public sector banks, including scope for consolidation.
  • It proposes a dedicated Green Bank or climate finance facility to mobilise private capital for renewables, electric mobility and clean transport, citing financing needs of about $4.1 trillion through 2047.
  • For MSMEs, the agenda calls for standardised SME securitisation, removal of tax and stamp-duty frictions, a government-backed credit enhancement vehicle and lower borrowing costs through interest equalisation.
  • The group urges a modern bank resolution regime with higher deposit insurance, faster depositor payouts and a credible resolution funding backstop to strengthen confidence.
  • Participants highlight rising data-centre needs from digital and AI-led growth and recommend a national mission against digital fraud, while noting that recent FDI easing outside the budget has already lifted inflows.