Indian banks to be among global top 20
NEW DELHI: The decade gone by has brought change to India at an unprecedented pace. Among the many transformational developments of these years, I would pick three that were truly momentous in their impact. First, we crossed per capita GDP of $500 and $1,000 in the same decade.
This had tremendous implications for savings growth, consumption demand and the ability to finance investment in the country. Suddenly, so many possibilities emerged, not only for growth in traditional business segments but also for building a whole new set of businesses, to meet the needs associated with this upward migration of large sections of our people. Second, India quickly adopted and leveraged developments in information and communications technology, in some cases leapfrogging intermediate stages of development.
This enabled the quick scale up of new paradigms of distribution and service delivery in a range of areas. Third, the Indian corporate sector emerged from a period of restructuring and repositioning with healthy finances and globally competitive quality and cost metrics. This enabled it not only to leverage on growing domestic demand, but also to expand outside India, acquiring backward and forward linkages, making Indian brands known globally and acquiring marquee global brands.
The financial sector was quick to respond to these developments and meet the emerging financial services needs of Indian businesses and households. The rise in household incomes created a robust and sustained growth opportunity for intermediation of savings through a range of prod- ucts, and for financing household asset creation.
The financial sector responded to this opportunity by expanding distribution, leveraging technology for improved service delivery and increasing access to affordable retail credit. It partnered Indian industry in its global foray, while developing capabilities to meet its needs in a range of areas from treasury solutions to technology-enabled transaction banking.
Just as the India of 2010 is very different from the India of 2001, so will the India of 2020 be very different from the India of today. The difference perhaps is that today, based on the experience of the last few years, we have greater confidence and ability to envision what that future could be, than what we did ten years ago. At current growth rates, we will double per capita GDP again in the next ten years. -PB News