India’s Banking & Financial Sectors Show Robust Growth In FY24: Economic Survey

In its latest Economic Survey released on Monday, the Indian banking and financial sectors demonstrate exceptional performance in fiscal year 2024.

The survey underscores the role of these sectors in driving economic growth through effective fund mobilization and financial inclusion efforts.

The survey reports significant progress in several key areas. Bank credit has experienced double-digit growth, with non-performing assets (NPAs), both gross and net, reaching multi-year lows.

This trend reflects the government’s dedication to maintaining a robust and stable banking environment.

The capital markets have also contributed substantially, facilitating a remarkable Rs 10.9 lakh crore in capital formation during FY24.

This amount represents approximately 29% of the gross fixed capital formation by private and public corporations in FY23.

A notable highlight is the impressive growth in the Indian stock market’s capitalization.

The market capitalization-to-GDP ratio now ranks fifth globally, signaling strong investor confidence and economic vitality.

The survey details India’s targeted financial inclusion strategy, which encompasses market development, infrastructure enhancement, technological innovation, last-mile delivery, consumer protection, and financial literacy.

Key components include increasing the use of accounts through direct benefit transfers and promoting digital payments via RuPay cards and UPI.

Despite these achievements, the survey cautions that commercial banks and insurance companies need to be mindful of financial literacy levels.

It emphasizes the importance of avoiding over-lending, mis-selling, and addressing customer grievances to maintain a healthy financial ecosystem.

As India’s financial sector evolves, the survey also points to potential vulnerabilities that could arise both locally and globally.

It calls for the government and regulators to remain adaptable and responsive, ready to employ policy and regulatory measures as necessary to safeguard the sector’s stability.

Also Read: Budget Session Opens With Heated Debate Over NEET Paper Leaks & Examination System