Financial services sector must grow 20x for India to reach $30 trillion GDP, says report
financial services sector, with banks playing a pivotal role, a report released by Boston Consulting Group (BCG) in association with FICCI and Indian Banks’ Association has said. The report titled “Banking for a Viksit Bharat” says that since India, is a predominantly bank-led economy, it will require the banking sector to play an anchor role while the other financial asset classes continue to grow much faster.
This will require $4 trillion of capital base in banks, one-third of which will have to be fresh capital deployment, the report said.
India's banking system is in a strong position today – characterized by high profitability, robust capital adequacy, and low levels of non-performing assets (NPAs).
«The journey towards a $30 trillion economy by 2047 is an ambitious yet achievable goal for India, demanding a transformation in the financial services sector, with banks at the forefront,” said Ruchin Goyal, Managing Director and Senior Partner at BCG, and Co-author of the report. “India's banking system is in a strong position today acting as an ideal launchpad for the Viksit Bharat mission.”
The report highlights that the financial sector will have to build for the next 2 decades through structural shifts – growing deposits, enhancing asset quality, and improving productivity, while advancing digital capabilities and future competencies.
“One of the primary objectives of the banking industry is to ensure financial inclusion, creating opportunities for every individual to grow and contribute to the nation’s
