A constant refrain has been about the lack of private sector investment in capital formation despite a host of measures such as interest rate cuts, tax reductions and fiscal incentives. The RBI’s latest monthly bulletin has a study on funding for the commercial sector which seems to allay fears, at least on resource availability. It says the financial system, though still bank-led, has liberalised sufficiently with diverse sources of funding now, especially non-bank avenues such as equity, bonds, foreign capital, and non-bank entities.

The gist seems to be that funding is not a constraint any more. Non-bank funds which had a share of 33% a few years back, now contribute about 49%, so much so that even when bank credit slowed, as in FY25, overall funding managed to grow by 30% thanks to th

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