Development Finance Institute
The proposal to set up a Development Finance Institution (DFI) with a capital of Rs 20,000 crore would certainly help the MSMEs to get further credit support from the Government. This would in-turn catalyse financing the infrastructure projects such as national infrastructure pipeline an ambitious world-class project that would improve the quality of life for citizens.
The budget allocation for the affordable housing, overall infrastructure, will bring sustainable impact to these segments. Lending in the construction sector should become easy as recoveries would become better due to increased sales, especially in the non-metro cities. The announcement of Rs 1.10 lac crore to critical infrastructure areas like Railways, national highways and privatising of the Airports would ease the sector related issues, as lending is the key to address needs of the overall infrastructure sector.