Chief Economic Advisor, V Anantha Nageswaran today said that policy autonomy and managing global capital outflows effectively will safeguard India’s growth momentum. Addressing the  inaugural session of ‘Financing 3.0’ Summit, organised by  Confederation of Indian Industry  in Mumbai, Mr. Nageswaran said with a modest current account deficit, India has one of the brightest global economic growth prospects.

Issuing a note of caution against ‘financialization’, which refers to the dominance of the role of financial markets in public policy, Mr. Nageswaran said it can lead to a massive surge in inequality that can distort macroeconomic outcomes and policy discourse.

Speaking on the occasion, Chairman of the State Bank of India, Mr. C S Setty emphasised the need to develop the corporate bond market. He said insurance companies, mutual funds and pension funds should participate in the corporate bond market to help channel more capital into the markets.