India lacks adequate risk capital to realise its $5 trillion economy ambition: Kamakodi

India has the capital to support growth but lacks adequate risk capital to realise its USD 5 trillion economy ambition, City Union Bank MD and CEO N Kamakodi said on Saturday.

Kamakodi emphasised that while India is now the world's fourth-largest economy, its low per capita income due to a high population remains a major challenge.

He was speaking at the launch of the banking and finance helpdesk at the Merchants' Chamber of Commerce & Industry (MCCI).


"Entrepreneurs should lead and bankers should support," he said, noting that chambers of commerce play a pivotal role in driving the economy.

Kamakodi pointed out that while Germany relies on debt and the US on equity to fund their economies, India must focus on building its risk capital pool to meet long-term goals.

State Bank of India General Manager (Network-II) Sanatan Mishra said Indian banks are currently at their strongest position to fund growth.

"UPI has become a game changer for low-ticket transactions and has enabled inclusive financial access," he said, adding that banks are well-capitalised and ready to finance capital expenditure, provided the private sector can absorb the credit.