Pre-Budget Expectations: Vikkas Goyal, Founder Rupee112

As the Union Budget approaches, we anticipate policy measures that recognize the pivotal role of NBFCs in driving infrastructure growth. Infrastructure financing has been a core area where NBFCs can make significant contributions, given our flexibility in underwriting and customized solutions.

To this end, we expect the government to announce long-term funding mechanisms or partial credit enhancement programs, tailored specifically for NBFCs. Measures to reduce the cost of borrowing, such as extending the benefit of tax-free infrastructure bonds to NBFCs, can further boost our ability to channel credit into critical sectors like transportation, energy, and urban development. We also urge the government to streamline regulatory guidelines to reduce compliance costs and encourage public-private partnerships.

This year’s Budget should emphasize enhancing credit flows while reducing operational barriers, enabling NBFCs to contribute meaningfully to India’s vision to become a fast growing economy.