Mumbai (Maharashtra), August 25 (ANI): For India to reach its ‘Viksit Bharat’ goals, the banking sector needs to grow faster than the country’s nominal GDP. A recent report from the Boston Consulting Group (BCG), in collaboration with FICCI and the Indian Banks’ Association, highlights this urgency.
The report indicates we’re at a pivotal moment. The next two decades could shape India’s path to becoming a global leader. Over the last 15 years, banking assets have closely followed nominal GDP growth, maintaining a ratio of around 0.9x. To meet the Viksit Bharat targets, that ratio needs to increase to 1.5x.
A strong, innovative banking sector is crucial for India’s future. The landscape is complex, with geopolitical risks and changing consumer habits. The rapid rise of AI is adding another layer of change. “The disruption caused by AI and evolving consumer expectations is unlike anything we’ve seen before,” the report notes.
The Indian banking industry is in a good position—it’s profitable and well-capitalized. For sustained progress, banks must focus on corporate credit, especially in key areas like infrastructure, manufacturing, and renewable energy.
Jyoti Vyij, Director General of FICCI, stated, “The banking system’s ability to fund growth while ensuring stability is essential for India’s journey towards a Viksit Bharat.”
AI has great potential in this arena. According to the report, with effective use of AI, about 35-40% of low-value tasks could be automated, leading to more focus on important activities.
CS Setty, Chairman of the Indian Banks’ Association, mentioned that India’s Digital Public Infrastructure—like Aadhaar and UPI—has greatly improved access to banking. The next step is to enhance these services further, leveraging new platforms to create seamless digital experiences. This move could deepen customer relationships and elevate India’s banking landscape to world-class standards.
As we navigate this transformative era, India’s banking sector holds the keys to achieving broader economic aspirations. Striving for innovation and inclusion will be essential for making the Viksit Bharat vision a reality.
For more insights, you can check out the full report from the Boston Consulting Group.
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