New Delhi, May 1 (NationPress) Minister of State for Road Transport and Highways Ajay Tamta on Thursday underscored the vital role that capital markets and commodity markets play in financing India's economy.

Speaking at the PHDCCI annual convention focused on Capital Market & Commodity Market, the minister noted that India boasts the largest road network, backed by a budget of Rs 3 lakh crore. He referenced the recent progress on the Silkyara Tunnel and India's embrace of cutting-edge technologies, which further bolster the nation’s market.

He expressed confidence that the synergy between government and industry will pave the way for Viksit Bharat.

The minister highlighted the remarkable advancements in the nation’s road network, with all-weather roads being constructed, and emphasized that capital markets are integral to this development.

He commended the vision for GIFT City under Prime Minister Narendra Modi, where India is setting ambitious benchmarks.

Additionally, he discussed how road networks are now linking rural areas to major cities and state capitals through new greenfield and elevated road initiatives.

Shekhar Chaudhary, Director of the Financial Market Division at the Ministry of Finance, stated that for Viksit Bharat, the government recognizes that a substantial portion of investments must flow through capital markets.

He pointed out the swift pace at which India has dematerialized securities. Following the pandemic, participation from individual investors has significantly increased.

India has experienced a boom in IPOs from startups. Moving forward, maintaining regular communication between the government, regulators, and financial markets is crucial for strengthening this ecosystem, he added.

Ashok Agarwal, Executive Chairman & Founder of Globe Capital Market Ltd., highlighted the growth in capital markets, noting that total deposits have surged from Rs 10 lakh crore in 2000 to Rs 225 lakh crore today, a remarkable increase of 22.5 times.

He stressed that road construction demands significant capital, which makes capital markets essential. To realize the vision of Viksit Bharat, India’s per capita income must increase tenfold, from $2,100 to at least $21,000, necessitating a GDP of approximately $25–30 trillion. Capital markets will be instrumental in achieving this growth. He also indicated the need for systems and instruments to determine interest rates within India.

The current market capitalization is $5 trillion, which is double that of bank deposits, showcasing why more deposits are flowing into capital markets due to higher returns. On average, returns in capital markets are 10 times greater than those from bank investments.

Pranjal S Jayaswal, General Manager at SEBI, elaborated on the importance of financial markets and SEBI's role in building Viksit Bharat, and how to remain resilient against external shocks. SEBI’s mandate encompasses market regulation, development, and investor protection.