Chairman for Economic Studies in the Vivekananda International Foundation, S Gurumurthy has advocated for a comprehensive inter-related approach to Indian economic modeling and stressed on several important points to improve the economy. Mr Gurumurthy was speaking at a discussion on Political Stability and Transformation of Union Budget in New Delhi on Saturday. He said, banking system should be strengthened in a way that it can undertake the burden of rebuilding the economy. Suggesting the measures aiming at restyling the economy, he said, development banking should be separated from commercial banking first. He said, development finance institution should be established to reduce the possibility of generation of Non Performing Assets, NPAs. 

Speaking on the occasion, Rajya Sabha MP Rajeev Chandrasekhar held strong political stability responsible for progressive economic growth, saying it has positive impacts on overall developmental target across sectors. He said, political stability not only cleans up the financial system but improves the credit culture through governance and bring reforms in public sector banks. He also added that resolution of NPAs and consolidation of public sector banks can be done under the umbrella of strong leadership at the Centre. AIR Correspondent reports that more than 100 participants from financial background, academia and students attended the panel discussion.