Kolkata, Sept 13 (IANS) Urging bodies of eminence like the Indian Statistical Institute (ISI) to conduct research on facilitating more financial inclusion, union Finance Minster Pranab Mukherjee Sunday said sound data and perfect analysis were a must for devising key policy initiatives.

"I have asked the institute if they can come up with reserach that can help in reaching banking services to the people," the finance minister during a programme at the institute here.

With banking facilities now available to less than two thirds of the country’s population in rural and semi-urban areas, he asked the institute to explore possibilities of introducing innovations for greater financial inclusion.

Terming research and development as the most vital part in taking key economic policy initiatives, Mukerjee said: "Without sound data and perrect analysis, it is not possible to formulate major policy initiatives".

The institute also inked a memorandum of collaboration with the Defence Research and Development Organisation (DRDO) on a Rs 9.7 crore scheme for providing security solutions for the DRDO’s installations.

Speaking at another event, the finance minister advised caution for the Indian economy, saying the global economic slowdown was still not over. "We will have to stay alert as India is not alienated from the global situation," he said while inaugurating production at the second plant of the Ess Dee Aluminium Ltd. at Hoera in Hooghly district.

Mukherjee said in a recent global forecast, the International Monetary Fund (IMF) has said the European economic recovery will be delayed and the same is true for Canada and North America.

"Since we are not alienated (from the global economy), we will have to stay alert," he said.