With the private investment in the country yet to pick up, Finance Minister Arun Jaitley wondered whether it is desirable to continue offering high interest rates on savings that translate into higher cost of lending and sluggishness in the economy. <br/><br/>Speaking at a function in New Delhi to unveil a commemorative postage stamp to mark 140 years of Bombay Stock Exchange, he said, India has peculiar characteristics of having quite high percentage of domestic savings. <br/><br/>He asked, whether domestic savings are only to be used by such instruments which give a higher return and create an interest regime which is extremely costly and makes the economy sluggish, or higher returns are to be got from such instruments as funds, bonds and shares.<br/><br/>Mr Jaitley said, the essence of all economic activity is investment, which is going to come from where resources are available. He said, as India grow over the next several years and decades, more and more opportunities will to come to the country. <br/><br/>Mr Jaitley said, Indian economy will need a lot of investment for a reasonably long period to bridge the infrastructure and industrialisation deficit that has existed for decades. He said, the starting point of all activity has to be investment and resource-raising. <br/><br/>The finance minister said, last few years have seen India grow well on the strength of enhanced public investment and FDI. He said, the best of private sector in that development process is yet to be seen.<br/><br/>Stating that absence of demand has been cited for lack of private investment, he hoped urban demand will improve and with a good monsoon this year, there would be signs of increased rural demand itself and all these in turn would lead to opportunity for the private sector itself. <br/><br/>He said, it will lead to a lot more activity at institutions like BSE, he said, adding that the best of the two stock exchanges BSE and NSE is yet to come by.

With the private investment in the country yet to pick up, Finance Minister Arun Jaitley wondered whether it is desirable to continue offering high interest rates on savings that translate into higher cost of lending and sluggishness in the economy. <br/><br/>Speaking at a function in New Delhi to unveil a commemorative postage stamp to mark 140 years of Bombay Stock Exchange, he said, India has peculiar characteristics of having quite high percentage of domestic savings. <br/><br/>He asked, whether domestic savings are only to be used by such instruments which give a higher return and create an interest regime which is extremely costly and makes the economy sluggish, or higher returns are to be got from such instruments as funds, bonds and shares.<br/><br/>Mr Jaitley said, the essence of all economic activity is investment, which is going to come from where resources are available. He said, as India grow over the next several years and decades, more and more opportunities will to come to the country. <br/><br/>Mr Jaitley said, Indian economy will need a lot of investment for a reasonably long period to bridge the infrastructure and industrialisation deficit that has existed for decades. He said, the starting point of all activity has to be investment and resource-raising. <br/><br/>The finance minister said, last few years have seen India grow well on the strength of enhanced public investment and FDI. He said, the best of private sector in that development process is yet to be seen.<br/><br/>Stating that absence of demand has been cited for lack of private investment, he hoped urban demand will improve and with a good monsoon this year, there would be signs of increased rural demand itself and all these in turn would lead to opportunity for the private sector itself. <br/><br/>He said, it will lead to a lot more activity at institutions like BSE, he said, adding that the best of the two stock exchanges BSE and NSE is yet to come by.