reasonable time frame, would provide a much needed fillip to the economy and galvanize it for all round progress and development. innovation and entrepreneurship 25. india has been lagging behind in innovation and entrepreneurship. we are ranked 89th out of the 118 nations in the global entrepreneurship and development index, 2013 ( gedi ), published by gedi, a specialized non - profit research and consulting firm. the “ doing business 2013 report ”, a study conducted by the international finance corporation of the world bank group ranks india at 173rd among the 185 countries surveyed on the criteria of “ starting a business ”. as i mentioned earlier, our education system needs to restructure itself significantly to promote innovation and entrepreneurship. as students of one of the premier institutions for management education in the country, i do expect that many of you would unleash your entrepreneurial energies to set up successful start - up business ventures instead of merely building up careers in already established firms. funding of entrepreneurship 26. funding is one of the key concerns for any start - up venture. in this regard, it may be mentioned that sebi data shows that investment by venture capital funds ( vcfs ) and foreign venture capital investors ( fvcis ), which had peaked at about 3. 1 per cent of gdp at current market prices in q3 of 2010 ( jul - sept ), has started declining since then ( chart 4 ). there is a need to reverse this trend. 27. india is emerging as an attractive destination for risk capital. there is, however, a need to further improve the entrepreneurial ecosystem by enhancing availability of risk capital to entrepreneurs at start - up and early stage. it was in this context that the planning commission constituted, in october 2011, a committee on angel investment and early stage venture capital chaired by shri sunil mitra. 4 28. the sunil mitra committee believes india ’ s entrepreneurial growth can be accelerated by creating more conducive conditions – a catalytic government and regulatory environment, adequate capital flows ( both debt and equity ), support from businesses and society, and availability of appropriate talent and mentoring. keeping in view the significant the report of the committee is available at planningcommission. nic. in / reports / genrep / rep _ eco2708. pdf. bis central bankers ’ speeches impact of taking forward these recommendations in the strategic area of employment and wealth creation in the country within the coming decade, the committee had proposed the entrustment of the

an orderly way, the contagion effects on global financial conditions could be significant. while less urgent than the situation in europe, the risks surrounding sovereign debt are also affecting other regions. in particular, in the united states the spectre of a “ fiscal cliff ” looms over that country ’ s prospects for growth. more generally, weakness in global demand that is partly due to international current account imbalances continues to represent a major source of risk. moreover, in several advanced economies, keeping policy rates low over an extended period of time may stimulate excessive risk - taking. bis central bankers ’ speeches here in canada, the high level of indebtedness and the potential for a correction in the housing sector are the principal domestic risks facing the financial system. as well, the fragile situation abroad increases the probability of a negative shock to the incomes and wealth of canadian households. to date, the crisis in europe has had a limited impact on our financial system. canadian markets have remained relatively stable, and our banks continue to have good access to wholesale funding markets. nonetheless, a deterioration in the situation could have a considerable effect on canada through trade, confidence and financial channels. even though our financial system is solid, it is important to take further steps to bolster its ability to absorb shocks. the creation of a central counterparty for the repo market is a step in that direction. with your permission, i will now turn to the crucial role played by the repo market in canada. the repo market repos – transactions that involve selling a security while concurrently committing to repurchasing it at a later date for the sale price plus interest – are the economic equivalent of secured loans. investment dealers and banks use the repo market as a source of low - cost secured financing to fund long positions and hedge short positions on securities. these activities allow market - makers to generate liquidity for the broader financial system and maintain liquid secondary markets. other institutions, such as insurance companies and pension funds, also use the repo market as a tool to manage cash balances. since a very large proportion of repo transactions are short term, the turnover rate in this market is high. these transactions provide the immediate margin of adjustment for financial institutions ’ funding structures. to give you a sense of magnitude, on 30 march 2012, the repo positions on the securities of canadian banks were valued at a total of can $ 90 billion ( approximately 5 per cent of their canadian - dollar - denominated assets