Indian Financial Market: Fuelling the Growth of the Indian Economy

According to the National Council of Applied Economic Research (NCAER), the INR 146 trillion (GDP) Indian economy is slated to grow between 8.4 and 10.1% in 2021-22. This is glad tidings considering that the country's economy underwent a contraction of about 7.3% in the last fiscal year as a result of the COVID-19 pandemic and ensuing lockdown. Robust and developing financial markets are at the centre of economic growth. Financial markets help growth in two major ways. Firstly, by channelling savings into investment avenues, thus helping in the capital generation.

Financial markets mop up excess liquidity and help grow the earnings of the investor. Secondly, by extending credit facilities, the markets promote new businesses and entrepreneurial ventures, employment generation, and economic growth. Banks and NBFCs, top financial advisors, and banking experts of the country are thus the major players 'in the nation's economic growth.

Famous Financial Experts Fuelling the Growth of the Indian Economy

Some of the best financial initiatives, particularly the push towards a digital economy, can be attributed to the likes of Arif Khan, Chief Digital Officer at National Payments Corporation of India (NPCI), and Anna Roy, Senior Advisor at NITI Aayog, to name a few. These financial experts have been the brains behind 'the massive push to adopt paperless, digital banking, UPI, and several cutting-edge fintech initiatives.

Fintech companies are also driving the economic growth of the country with innovative solutions for small businesses. Ravish Naresh, the Co-Founder, and CEO of KhataBook focuses on small traders, shopkeepers, and suppliers, aiding them to digitise their credit flow. Similarly, Nikhil Kumar of IndiaStack has helped create APIs for Unified Payments Interface (UPI) and led the team that built BHIM. This has indeed revolutionised the finance markets and, in turn, given a significant boost to the economy.

Top NBFC leaders in India, such as Sanjiv Bajaj are leading the fintech revolution by harnessing the use of technology and mobile platforms to make financial services available to people from the far reaches of our country. Connecting the rural population with investment and credit is a great way to boost the agricultural sector, small-scale industries, and entrepreneurship.

How do financial markets help the economy grow?

The financial service market is a mirror of the health of the economy as a whole. The availability of capital and credit, the smooth functioning of the banking system, and the equity markets all reflect the country's fiscal stability.

• Financial markets offer financial products to suit the budget and appetite of diverse groups of investors. This promotes fiscal inclusivity, allowing more and more people to invest, borrow, get insurance cover, etc
• Financial markets are instrumental in providing capital infusion to small and large-scale industries and credit to public and private entities. This helps in infrastructure development, employment generation, and economic growth
• Fiscal markets employ strategies such as diversification and hedging, thus minimising the risks of investors

Indian banking leaders and top NBFC leaders are the backbones of the country's economy. Let us take a look at some of the financial leaders who have distinguished themselves by their contribution.

1. Sashidhar Jagdishan - The CEO of HDFC Bank, Sashidhar Jagdishan has been the force behind the bank's technology transformation and credit outreach program. Reinventing the bank's IT systems and processes, Sashidhar Jagdishan has made banking and credit facilities available to Indians from semi-urban and rural areas.
2. Uday Kotak - Executive Vice-Chairman and Managing Director of Kotak Mahindra Bank, Uday Kotak, has been focused on the safety, security, and growth aspects of banking and financial systems in the country. He has led his bank to expand its investment portfolio and offer various financial products to Indians.
3. Sanjiv Bajaj - The Chairman and Managing Director of Bajaj Finserv, Sanjiv Bajaj has been instrumental in the company's transformation into one of the most trusted financial services company in the country. His approach of reinventing the company every 3-5 years has brought consumer financing closer to the masses with digitalisation of services and made affordable healthcare solutions through technology and innovation.
4. Sandeep Bakhshi - The CEO and Managing Director of ICICI Bank, Sandeep Bakhshi has strengthened the investment advisory and financial planning services of the bank. Some of the top financial advisors and bankers at ICICI bank are known for their customer-centric approach and diversification.
5. Amitabh Chaudhry - The CEO and Managing Director of Axis Bank, the third-largest private bank in the country, Amitabh Chaudhry has taken banking and allied services to the country's rural regions. From micro-financing to customer outreach programs, the bank has worked hard to combat the setbacks caused by the pandemic.

The growth and development of the financial markets form the very foundation of the country's economic growth. The efforts of the country's bankers and top financial leaders have been reflecting in the post-pandemic growth that the country is now experiencing.

Conclusion

The financial markets form the very core of our nation's economy. The growth and efficiency of the banks, the NBFCs, and other entities in the financial markets are indicators of economic growth and development. From offering investment options, insurance, and an array of financial products to making credit available to large and small scale industries, our banks and NBFCs are taking the lead in stimulating economic growth.