“Bankers’ key to Regional Economic Development and Successful Implementation of Central Government Schemes” – Shri G Kishan Reddy, Minister of Development for the North Eastern Region at the North East Banking Conclave

The Ministry of Development of North Eastern Region (MDoNER) in collaboration with the North Eastern Development Finance Corporation Limited (NEDFi) on 28^th April 2023 organized “The North East Bankers’ Conclave 2023” at the Constitution Club of India, New Delhi supported by the State Bank of India and Confederation of Indian Industry (CII) as Industry Partner.

The conclave marked first of its kind leadership event, bringing together various stake holders from the banking and finance sector, policy makers, and regulators to brainstorm the challenges faced by the banking sector in North-East India and to deliberate and come up with some immediate and long-term actionable strategies to address issues at various levels, from the policy planning and up to the grass-roots level of implementation, thereby promoting equality and economic growth in the region.

Inaugurating the conclave, Shri G Kishan Reddy, Union Minister of Development for the North Eastern Region (DoNER), said that the North Eastern Region (NER) has unique challenges which require innovative practical solutions. He further stated that, MSMEs are the backbone of the NE economy and are rooted in the greater vision of Atmanirbhar Bharat. Banks should prioritize support and promote Agri-Horti Sector, MSMEs, and Start-Ups in the North East. He further added that under the visionary leadership of  Prime Minister Shri Narendra Modiji, Northeast Region is set to become the new growth Engine of India, He added that the connectivity and transport infrastructure improved in the region, including connectivity by Railways. There has been an increase of 113% in air traffic through 17 airports in the region including 3, which are international airports. The  Minister also emphasized the seven strategic priorities, the ‘Saptarishis’ i.e., inclusive development, reaching the last mile, infrastructure & investment, unleashing the potential of green growth, youth power, and financial sector for holistic development of NER, and said that the banking community has a vital role to play on each of the seven priorities.

The conclave was also graced by Dr. Bhagwat KishanraoKarad, Minister of State (Finance), and Shri B. L. Verma, Minister of State (DoNER)besides senior bureaucrats from the Government of India, NE States, various leaders from the banking and financial sector, regulators, industry experts, policy-making organizations and other stake holders.

Shri G Kishan Reddy further said that with massive development unfolding in the region, peace, and stability have been ensured, and there is unprecedented political focus on the region. He said that in the last 9 years  PM, Shri Modiji has himself visited the region over 60 times and every fortnight Union ministers Visit different backward regions of the North East. He said that now is the opportune time to hold such progressive discussions and find lasting solutions. He said that the North East Region has a huge potential in various sectors like Agri-Horti culture, Tourism, Hospitality, Manufacturing, etc along with a hugely talented workforce. He said that this potential needs to be leveraged and the banking fraternity needs to step up their support in building a robust Start Up ecosystem in the region and generate employment opportunities. There is a need and opportunity for the banking sector to promote industrialization, financial inclusion, and promoting entrepreneurship across the emerging sectors by increasing credit flow, he added.

Shri G Kishan Reddy also stressed the need to support the entrepreneurs in developing market linkages and value-added support to the entrepreneurs to ensure the success of the MSMEs and startups in the region. He also added that close coordination with State governments is being ensured to maximize the potential of the banking fraternity in the region.

The Conclave served as an opportune platform to bring together some of the distinguished stakeholders as panelists and participants from various commercial banks, development banks, startups, policymakers, think-tank organizations, micro-lending organizations, regulatory authorities, and entrepreneursto discuss, debate, and develop ideas on how the Banking Sector in the NER can catalyze accelerating development in the NER.

The four specifically themed panel discussions on credit flow to Agri & Allied Sector, MSMEs & Startups, Implementation of Central Schemes by Banks, and Issues in Banking in the North East minutely assessed the performance, prospects, and challenges faced by the banking and financial services industry in the North Eastern Region.

It was acknowledged that much has already been achieved in the last 9 years and there is a potential to achieve a lot more. Stake holders further highlighted that new initiatives should focus on enhancing the access to credit and financing by the banks, which in turn will help increase the CD ratio in NER and contribute to the overall growth of the local economy. Future strategies and plans will focus on improving agri-credit, MSME credit, and financial inclusion in all 2200 border villages.

Concluding the deliberations, it was highlighted that the government in collaboration with the banking fraternity will focus on developing a strong banking infrastructure, enhancing financial literacy, and creating a digital ecosystem in NER, for improving financial inclusion. Proactive collaboration of all stakeholders – Policy makers, Bankers, Regulators, Industry experts, entrepreneurs, and the wider business community – was emphasized for implementing the transformational strategies.

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MG/RK/PD