Industry's desire for reforms also included further development of a corporate debt market, improved infrastructure trusts and debt fund structures, long-term rupee-denominated government securities, and an updated external commercial borrowing regime, USIBC said.

USIBC applauded the Indian government for its recent reform introduced in private sector banking that permits the total foreign holding in private banks to have a composite cap of 74 per cent and eliminates existing sub-limits for FDI and FII capital (which were at 49 per cent).

Banks and investors will have greater flexibility to raise capital and to meet the stringent capital adequacy norms. This reform is a critical step in supporting credit growth in the financial markets and the Indian economy, USIBC said.

"As global commercial institutions and investors, we remain profoundly committed to India as we continue to provide a variety of long-term resources - including capital, technology, and know-how - which will help advance the Prime Minister's goals of financial stability, economic growth, digital access, and financial inclusion," Banga said.

USIBC president Mukesh Aghi said the Indian financial markets are an important driver for the country's economic growth. "There needs to be a level playing field for global participants in India's financial markets with clear, nationality-neutral regulations across all asset classes," he said.