Amid the tightening of global financial conditions, increasing protectionism and growing geo-political issues, CII expects Indian economy to grow at 7.3% - 7.7% for FY2019. Historically, banks have played a pivotal role in financing the growth of the economy. However, the prevailing NPA situation in the banking sector and the unethical practices unearthed episodically has stifled the capacity of the banks to extend credit.
Over the years, the Indian Financial Markets have been successful in setting-up and creating a market for different asset classes. The growth of domestic financial markets has been backed by strong regulatory regime, transparent clearing and settlement mechanism, appropriate risk management tools and the ability for market penetration.
For the economy to achieve the stated growth and sustain it, there will be a continuous demand for finance by the corporates in various sectors to expand their operations and for capacity building. With reduced capacity of the banks to support the economic growth and increasing investment appetite of the country, it is imperative to propel further development of all the segments of financial markets so as to make it a catalyst for capital formation in the country.