By Sanjay Chamria

Jul 5 (IANS): The second term of the National Democratic Alliance (NDA) is a reflection of India voting for stability. The government needs to target bringing growth back to the economy as its one point plan.

The government's chief move in the financial sector should be to address the lack of money movement at banks and accelerate the flow of money in the system at large. Investors need to be incentivised to invest in the non-banking financial company (NBFC) sector both on the equity and debt side, to enable short-term and long-term funding.

Mutual funds (MFs) have Rs 1.3 trillion exposure to NBFCs (including HFCs) which is about to mature over the next three months. NBFCs play a critical role in providing credit of around Rs 8.5 trillion to the marginalised and economically backward, which is the backbone of the Indian economy.

Truckers, drivers, small business owners and affordable home owners, all rely on NBFCs for credit, thus making them a critical ingredient in the financial sector.