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Why does the Confederation of Indian Industry (CII) advocate for reforms in the Priority Sector Lending (PSL) framework?
- a)To increase the fixed percentage of loans allocated to agriculture.
- b)To adapt financial policies to emerging sectors and enhance economic growth.
- c)To reduce the number of sectors covered under PSL.
- d)To eliminate the need for Development Finance Institutions.
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Why does the Confederation of Indian Industry (CII) advocate for refor...
The CII's push for reforms in the PSL framework is aimed at broadening its scope to include emerging sectors such as digital infrastructure, green initiatives, and healthcare. This reflects the need for financial policies to adapt to the evolving economic landscape and ensure that critical sectors receive adequate support. By including high-impact areas in PSL, the CII believes it can drive economic growth and innovation, thereby enhancing overall national development. This proactive approach is essential in a rapidly changing economic environment where traditional sectors may no longer be sufficient to meet future challenges.
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Why does the Confederation of Indian Industry (CII) advocate for refor...
Understanding the Advocacy for PSL Reforms by CII
The Confederation of Indian Industry (CII) recognizes the need for reforming the Priority Sector Lending (PSL) framework for various reasons, primarily focused on adapting to current economic conditions and fostering growth in emerging sectors.
Importance of Adapting Financial Policies
- Dynamic Economic Landscape: The Indian economy is rapidly evolving, with new sectors such as technology, renewable energy, and startups gaining prominence. The existing PSL framework may not adequately address the financing needs of these emerging sectors.
- Enhanced Economic Growth: By advocating for reforms, CII aims to channel funds into areas with high growth potential, thus stimulating innovation and development in sectors that contribute significantly to GDP.
Benefits of the Proposed Reforms
- Resource Allocation: Reforming the PSL framework allows for better resource allocation, ensuring that financial institutions can support sectors that are crucial for the future of the economy.
- Flexibility and Responsiveness: A more adaptive PSL framework can respond more effectively to market demands, allowing banks to lend to sectors that require immediate support.
- Sustainable Development: By focusing on emerging sectors, the reforms promote sustainable economic development, ensuring that growth is inclusive and balanced across various industries.
In conclusion, the CII's advocacy for PSL reforms is driven by the need to align financial policies with the demands of an evolving economy, ultimately aiming to enhance overall economic growth and development in India.
The Confederation of Indian Industry (CII) recognizes the need for reforming the Priority Sector Lending (PSL) framework for various reasons, primarily focused on adapting to current economic conditions and fostering growth in emerging sectors.
Importance of Adapting Financial Policies
- Dynamic Economic Landscape: The Indian economy is rapidly evolving, with new sectors such as technology, renewable energy, and startups gaining prominence. The existing PSL framework may not adequately address the financing needs of these emerging sectors.
- Enhanced Economic Growth: By advocating for reforms, CII aims to channel funds into areas with high growth potential, thus stimulating innovation and development in sectors that contribute significantly to GDP.
Benefits of the Proposed Reforms
- Resource Allocation: Reforming the PSL framework allows for better resource allocation, ensuring that financial institutions can support sectors that are crucial for the future of the economy.
- Flexibility and Responsiveness: A more adaptive PSL framework can respond more effectively to market demands, allowing banks to lend to sectors that require immediate support.
- Sustainable Development: By focusing on emerging sectors, the reforms promote sustainable economic development, ensuring that growth is inclusive and balanced across various industries.
In conclusion, the CII's advocacy for PSL reforms is driven by the need to align financial policies with the demands of an evolving economy, ultimately aiming to enhance overall economic growth and development in India.
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Why does the Confederation of Indian Industry (CII) advocate for reforms in the Priority Sector Lending (PSL) framework?a) To increase the fixed percentage of loans allocated to agriculture.b) To adapt financial policies to emerging sectors and enhance economic growth.c) To reduce the number of sectors covered under PSL.d) To eliminate the need for Development Finance Institutions.Correct answer is option 'B'. Can you explain this answer? for Bank Exams 2025 is part of Bank Exams preparation. The Question and answers have been prepared according to the Bank Exams exam syllabus. Information about Why does the Confederation of Indian Industry (CII) advocate for reforms in the Priority Sector Lending (PSL) framework?a) To increase the fixed percentage of loans allocated to agriculture.b) To adapt financial policies to emerging sectors and enhance economic growth.c) To reduce the number of sectors covered under PSL.d) To eliminate the need for Development Finance Institutions.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Bank Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Why does the Confederation of Indian Industry (CII) advocate for reforms in the Priority Sector Lending (PSL) framework?a) To increase the fixed percentage of loans allocated to agriculture.b) To adapt financial policies to emerging sectors and enhance economic growth.c) To reduce the number of sectors covered under PSL.d) To eliminate the need for Development Finance Institutions.Correct answer is option 'B'. Can you explain this answer?.
Why does the Confederation of Indian Industry (CII) advocate for reforms in the Priority Sector Lending (PSL) framework?a) To increase the fixed percentage of loans allocated to agriculture.b) To adapt financial policies to emerging sectors and enhance economic growth.c) To reduce the number of sectors covered under PSL.d) To eliminate the need for Development Finance Institutions.Correct answer is option 'B'. Can you explain this answer? for Bank Exams 2025 is part of Bank Exams preparation. The Question and answers have been prepared according to the Bank Exams exam syllabus. Information about Why does the Confederation of Indian Industry (CII) advocate for reforms in the Priority Sector Lending (PSL) framework?a) To increase the fixed percentage of loans allocated to agriculture.b) To adapt financial policies to emerging sectors and enhance economic growth.c) To reduce the number of sectors covered under PSL.d) To eliminate the need for Development Finance Institutions.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Bank Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Why does the Confederation of Indian Industry (CII) advocate for reforms in the Priority Sector Lending (PSL) framework?a) To increase the fixed percentage of loans allocated to agriculture.b) To adapt financial policies to emerging sectors and enhance economic growth.c) To reduce the number of sectors covered under PSL.d) To eliminate the need for Development Finance Institutions.Correct answer is option 'B'. Can you explain this answer?.
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