According to the Economic Survey, which was made public on Monday, India’s banks and financial industries did a fantastic job in FY24 of raising capital to support financial inclusion and economic growth.
“The government’s commitment to a healthy and stable banking sector is highlighted by double-digit and broad-based growth in bank credit, gross and net non-performing assets at multi-year lows, and improvement in bank asset quality,” the poll states.
The statement highlights that in FY24, primary capital markets contributed ₹10.9 lakh crore to capital formation, which is equivalent to around 29% of the gross fixed capital formation of private and public corporations in FY23.
According to the poll, the Indian stock market’s market capitalization has increased significantly, and its market capitalization to GDP ratio is currently the fifth-highest in the world.
It continues, “A target-based approach, market development, infrastructure strengthening, innovation and technology, last-mile delivery, consumer protection, and financial literacy and awareness have been the strategy for financial inclusion.”
It highlights how the nation’s financial inclusion policy has prioritized account utilization by boosting direct benefit transfer flows through these accounts and encouraging digital payments through the use of RuPay cards, UPI, and other services.
Simultaneously, it highlights the need for commercial banks and insurance companies to consider the nation’s financial literacy levels, refrain from overlending and misrepresenting products, and resolve complaints in order to maintain the health of the financial cycle for as long as feasible.
It also emphasizes the need for India’s financial industry to prepare for any vulnerabilities that could arise locally or worldwide as a result of the significant transformation the country is undergoing. To that end, the government and regulators must be adaptable and quick to act when necessary by using policy and regulatory levers.
