Deepak Mohanty Discusses India’s Shift from Savers to Investors at CII Financing Summit

New Delhi, India – September 3: Deepak Mohanty, Chairperson of the Pension Fund Regulatory and Development Authority (PFRDA), spoke about India’s transition from a nation of savers to investors at the Financing Summit 3.0 of the Confederation of Indian Industry (CII) in Mumbai.

Key Highlights

Mohanty emphasized that this shift reflects growing confidence in the financial system, improved financial literacy, and broader investment opportunities. He noted that household investments in bonds and equities are rising, while cash and bank deposits are declining.

To achieve a high-income status in the next 25 years, India needs to grow at an average rate of 8% per year, requiring an investment rate of 36% of GDP annually. Efficient conversion of savings to capital formation is crucial for meeting these growth targets.

Technological Advancements and Financial Inclusion

Mohanty highlighted the role of technology and financial inclusion in this transition. Increased Jan Dhan bank accounts, smartphone usage, and fintech proliferation have expanded access to financial markets. India’s financial behavior is shifting from risk aversion to risk-taking, with more Demat and MF SIP accounts, retail investor participation, and interest in innovative investment instruments like digital gold and cryptocurrencies.

Future Needs

Looking ahead, Mohanty stressed the need for greater financial sector depth, innovative financing mechanisms, data privacy and cybersecurity, enhanced financial literacy, and robust consumer protection.

Other Speakers

Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, emphasized transforming savers into informed investors and the need for financial literacy. Arun Muralidhar, Adjunct Faculty at Georgetown University, highlighted challenges in pension management and proposed developing “InDIAs” bonds for secure pensions. Neelkanth Mishra, Chief Economist at Axis Bank, noted that rising per capita GDP will boost financial savings and investment opportunities. Vishal Kampani, Non-Executive Vice Chairman of JM Financial, stressed that the transition should benefit a broader population segment.

The session was moderated by Dr. V Anantha Nageswaran, Chief Economic Advisor to the Government of India.

Deepak Mohanty -: Deepak Mohanty is a person who is the Chairperson of the Pension Fund Regulatory and Development Authority (PFRDA) in India.

PFRDA -: PFRDA stands for Pension Fund Regulatory and Development Authority. It is an organization in India that looks after pension funds and makes sure they are managed well.

CII Financing Summit -: CII Financing Summit is a big meeting organized by the Confederation of Indian Industry (CII) where experts talk about money and investments.

Mumbai -: Mumbai is a big city in India, also known as Bombay. It is the financial capital of the country.

savers to investors -: Savers are people who keep their money in a safe place like a bank. Investors are people who use their money to buy things like stocks or property to make more money.

financial literacy -: Financial literacy means knowing how to manage money well, like understanding savings, investments, and expenses.

capital formation -: Capital formation is the process of using savings to create more money by investing in things like businesses or infrastructure.

GDP growth rate -: GDP growth rate is how much the total value of all goods and services produced in a country increases in a year. An 8% growth rate means the economy is growing fast.

inclusive wealth creation -: Inclusive wealth creation means making sure everyone in the country has a chance to become wealthier, not just a few people.