Financialisation Concerns: Balancing Act for Viksit Bharat by 2047

India must carefully manage the influence of financial markets to achieve its vision of Viksit Bharat by 2047, warns the Economic Survey 2024-25. While the financial sector is thriving, maintaining equilibrium between growth and financialisation is crucial to prevent disparities and public policy distortion.

India needs to strategically handle the sway of financial markets to fulfill its vision for a developed nation by 2047, states the Economic Survey 2024-25. The report highlights the importance of steering clear of financial over-reliance, seen in advanced economies, that could skew policy decisions and exacerbate inequalities.

The survey underscores the performance of India's financial sector amid challenging geopolitical scenarios. It notes the importance of balancing economic growth with financial prudence and aligning the financial system with national growth goals, all while supporting sustainable development.

Amidst global pressures, India's financial indicators remain strong, with a decrease in the credit-deposit growth gap and growth in non-bank and equity-based financing structures. India's growing prowess in IPO listings further signifies the financial sector's dynamic evolution.

(With inputs from agencies.)