India must deepen market reforms to achieve a $30 trillion economy by 2047, according to a World Bank report. The Financial Sector Assessment highlights the need for financial sector improvements. Private capital mobilisation is crucial for this ambitious goal.
The World Bank’s FSA report acknowledges India’s digital public infrastructure as world class. Government programs have expanded financial service access for men and women. This foundation supports economic growth.
Suggestions include boosting account usage, especially among women. Access to diverse financial products for individuals and MSMEs needs enhancement. These steps will strengthen financial inclusion.
The Financial Sector Assessment Program is a joint IMF and World Bank initiative. It provides comprehensive analysis of national financial sectors. India participates in this mandatory assessment.
Since 2010, systemically important financial sectors require regular FSAP reviews. India is among 32 jurisdictions assessed every five years. This ensures ongoing financial system monitoring.
The IMF publishes Financial System Stability Assessment reports. World Bank releases Financial Sector Assessment reports. Both documents complete the FSAP process.
India’s last FSAP occurred in 2017. Both FSSA and FSA reports were published that December. The current assessment shows progress since then.
India welcomes the IMF-World Bank financial sector assessment. The finance ministry expressed appreciation for the comprehensive review. This cooperation supports economic planning.
The recent FSA report notes India’s financial system has become more resilient. Diversification and inclusion have improved since 2017. Reforms drove this positive change.
Financial sector reforms helped India recover from 2010s distress episodes. The pandemic response also benefited from these changes. Continued reform is essential.
Achieving India’s vision requires further reform impetus. The $30 trillion economy goal depends on financial sector advancements. Private capital mobilisation must increase.
Regulation and supervision of banks and NBFCs saw improvements. Expanded regulatory authority covers cooperative banks. Prudential rules were tightened.
Department reorganisation enhanced regulatory effectiveness. These structural changes support financial stability. They create a stronger foundation for growth.
India’s economic future looks promising with continued reforms. The World Bank report provides a clear roadmap. Following these recommendations will drive progress.
The $30 trillion economy target represents a significant milestone. With proper implementation of reforms, India can achieve this vision. The financial sector will play a key role.