For India to become truly wealthy, people in Tier-3 to Tier-6 towns must get benefits of multi-sectoral growth: NCDEX CEO
Mumbai, July 29
India can become truly wealthy when people in Tier-3 to Tier-6 towns get the benefits of economic, industrial and services-sector growth, NCDEX MD & CEO Arun Raste has said.
The National Commodity & Derivatives Exchange Limited (ncdex.com) launched its new mutual fund transaction platform named NCDEX Nidhi on Wednessday.
Speaking to ANI on the sidelines of the launch, Raste said when companies like Reliance or Tata grow, those gains should reach a farmer in the form of investment returns and dividends, in addition to their agricultural income.
Noting that NCDEX has a dedicated Farmer Producer Organization (FPO) division working directly with farmers across India, he said, the entity is working to develop educational material that can be effectively communicated to rural investors.
"India is growing rapidly, and if we don't educate and empower rural investors now, they will miss out on this growth story," he said adding "India can only become truly wealthy if people in Tier-3, Tier-4, Tier-5, and Tier-6 towns share in the benefits of our national economic, industrial, and service sector growth."
NCDEX Nidhi is a mutual fund transaction platform aimed at bridging the investment gap in rural and semi-urban India. NCDEX is a demutualized stock exchange operating under markets regulator SEBI (Securities and Exchange Board of India).
Rajiv Relhan, MD & CEO, National Commodity Clearing Limited (NCCL), stressed on simplification of financial products. He added simplifying financial products is crucial, as greater complexity can confuse investors and make it difficult for them to understand structured products.
"Even if you and I were to sit through a discussion on structured products, we would probably walk away after 15 minutes. Simplification in financial products is crucial," he said.
Tojo Banerjee, Chief of Equity Business, NCDEX, said India's mutual fund penetration in rural and semi-urban geographies remains well below its potential, not for lack of demand but for lack of accessible distribution.
"NCDEX Nidhi directly addresses that gap by putting a simple, compliant and API-ready platform in the hands of distributors, Registered Investment Advisers (RIAs), Asset Management Companies (AMCs) and retail investors. As NCDEX expands into equity and equity derivatives, this platform is a critical building block in our journey towards becoming a true multi-asset investment ecosystem for every Indian household," Banerjee said.
— ANI
Reader Comments
It's refreshing to see a focus on inclusive growth. In the US, we often overlook rural communities too. The idea of connecting farmers directly to investment returns from companies like Reliance or Tata is brilliant - it's basically creating a cycle where the farmer benefits from both his produce AND the companies that process or export it. 🚜📈
NCDEX Nidhi sounds good on paper, but honestly, I'm skeptical. My parents in a Tier-4 town in Karnataka still struggle with basic internet connectivity and literacy about bank accounts. How will they understand mutual funds? The government and SEBI need to first fix the basics - digital infrastructure and financial literacy in schools - before pushing investment platforms. Otherwise it's just another product for the already wealthy.
The CEO's point about farmers missing out on corporate growth is spot on. In Canada, we have similar issues where rural communities are left behind. But I wonder if this platform is just for the larger farmers (the FPOs) or will it also help the small landholder who grows vegetables on half an acre? The real wealth creation happens when even the smallest farmer can participate in the economy beyond just selling crops. 🌾
This is exactly what India needs - not just GDP growth in Mumbai or Bangalore, but real wealth distribution across the country. I've seen how FPOs are transforming villages in Maharashtra. If NCDEX can combine commodity exchange knowledge with mutual fund distribution, it could be a game-changer for rural savings. But the key is the educational material they mentioned - it has to be in local languages and very simple. Not everyone speaks English or understands 'asset allocation'. Good initiative overall! 👏
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