developed economy by 2047. while financial instruments and support mechanisms are crucial, the way we engage with the msme sector - our sensitivity to their challenges and our commitment to their successwill ultimately determine the strength and sustainability of this partnership. with this i thank fedai for inviting me and wish it continued success in its role as a catalyst for the smooth functioning of foreign exchange markets through close coordination with stakeholders. thank you all for your attention. 1 as per press release dated december 11, 2023 by the ministry of micro, small and medium enterprises, the share of msme gross value added ( gva ) in all india gross domestic product ( gdp ) was 29. 15 per cent for fy 2021 - 22 and the share of msme manufacturing gva in all india manufacturing gva was 40. 83 per cent for the same period. the percentage share of export of msme related products in all india exports was 43. 59 per cent for fy 2022 - 23. 2 the rbi has put in place an enabling framework for regulatory sandbox to facilitate live testing of new products or services in a controlled / test regulatory environment for which regulators may ( or may not ) permit certain regulatory relaxations for the limited purpose of the testing. there have been five cohorts under the framework since its issuance in august 2019. 3 national mission for capacity building of bankers ( namcabs ) 5 / 6 bis - central bankers'speeches 6 / 6 bis - central bankers'speeches

india, there is a need to improve the depth and liquidity of the corporate bond market to provide an additional source of funds for infrastructure companies. limited investor base, limited number of issuers and preference for bank finance over bond finance are the main macro barriers for development of a deep and liquid corporate bond market. rbi has issued the guidelines on repo in corporate bonds, which would be effective from march 2010. further, syndication of loans would diversify the risk in infrastructure financing, given the fact that a bank would not like to take upon itself the entire financing given the risks involved and the capital and consequent exposure constraints. c ) also credit enhancement to infrastructure by way of risk transfer and risk reduction could help bridge the gap in the indian context. lenders tend to look for credit enhancement from government like policy guarantees, refinancing and maturity extension guarantees, grants / viability gap funding, etc. similarly, non - government mechanisms like bond insurance, credit rating, etc. provide risk mitigation to the lenders. providing credit enhancement by way of insuring the debt payment by insurance companies to banks for the loans extended by them towards infrastructure projects is a concept considered in the north american infrastructure market. d ) comprehensive infrastructure development calls for simultaneous improvement of all infrastructure sectors, like power, telecommunications, irrigation, transport, housing, commercial complexes, water supply, sanitation and other urban amenities. in the current situation, it may no longer be possible for the governments to develop, upgrade and maintain infrastructure and provide all civic amenities on their own. it is in this context that governments are involving the private sector in the area of infrastructure development to bridge the gap between demand and supply. the public - private partnership is being actively pursued in india to meet the gaps in the provision of basic infrastructure services. the ppp model, where the state shares the risks and responsibilities with private firms while retaining the control of assets is generally expected to improve services while avoiding some of the pitfalls of privatization such as higher prices and corruption. however, for such partnerships to be successful, the framework of ppp including pricing has to be transparent. the development finance model has to be characterized by good planning, strong commitment of both the parties, effective monitoring, regulation and enforcement by the government. a separate ministry for infrastructure development could help immensely in channelising government ’ s efforts. the issue of pricing is crucial in view of the political sensitivities, while also simultaneously ensuring the viability of the project. if