FIBAC 2025: Charting New Frontiers
India is at a critical inflection point in its development trajectory. Over the next twenty years, it has a unique window to leverage its scale and momentum to build lasting global leadership. Realizing its ambitious ‘Viksit Bharat Mission’ will hinge on the evolution of a robust, innovative, and resilient banking and financial sector, capable of supporting India’s aspirations for sustainable, inclusive growth. The growth of India's banking assets has been in tandem with its nominal GDP growth over the last 15 years, with the ratio of banking assets to nominal GDP hovering around 0.9x. The drive to Viksit Bharat requires a multiplier of 1.5x. Many emerging and developed economies have seen banking asset growth outpace nominal GDP growth. For India, banking assets need to grow 3.0-3.5 percentage points faster than its nominal GDP. This is not happening today and is a clear risk to India's Viksit Bharat ambition. Currently several megatrends are reshaping the world economic order. Economies and their banking sector operate in a complex, multipolar world with volatile trade flows, shifting supply chains and geopolitical risks.
The combined disruption of AI/ GenAI and shifting consumer expectations is unfolding at a scale never seen in the last few decades. The Indian banking industry is poised to reach for leadership – it is profitable, well capitalized and highly valued.
It will need to seize this opportunity by charting new frontiers -
a) Unlocking growth
b) Driving productivity
c) Digital maturity and
d) Embedding resilience