Synopsis
India is emerging as a significant growth opportunity for foreign banks, with the government encouraging investments in the banking sector, as highlighted by Union Finance Minister Nirmala Sitharaman during her address at the India-UK Investor Roundtable in London.Key Takeaways
- India is a promising market for foreign banks.
- The government is enhancing regulatory frameworks.
- India aims to be the sixth largest insurance market by 2032.
- India's market capitalization is $4.6 trillion.
- Over 800 entities are registered with IFSCA.
New Delhi, April 9 (NationPress) India presents an attractive growth opportunity for international banks, with the government actively promoting foreign investments in the financial sector, emphasized Union Finance Minister Nirmala Sitharaman.
During the India-UK Investor Roundtable in London, attended by approximately 60 investors from various pension funds, insurance firms, banks, and financial institutions, the Minister detailed the government's priorities aimed at facilitating sustainable economic growth and investment prospects through supportive policies that are shaping New India.
She underscored the government's initiatives to implement process and governance reforms designed to alleviate compliance burdens and simplify regulations, thereby creating a conducive environment for business and investment, as stated by the Finance Ministry on Wednesday.
With a growing middle class and a robust policy framework, the Union Finance Minister projected that India is poised to become the sixth largest insurance market by 2032, anticipating a growth rate of 7.1 percent CAGR from 2024 to 2028—marking it as one of the fastest expanding insurance markets among G20 nations.
FM Sitharaman informed investors that the Indian securities market is among the first major markets to fully transition to “T+1 settlement”—achieved as early as 2023—and noted that India's market capitalization currently stands at $4.6 trillion (3.7 trillion GBP), ranking it fourth globally.
The Union Finance Minister elaborated on India's inaugural International Financial Services Centre, GIFT-IFSC—an offshore zone equipped with a favorable ecosystem that includes significant tax benefits, skilled workforce, foreign currency transactions, and a strategic geographical location.
She further revealed that by March 2025, over 800 entities across sectors such as banking, capital markets, insurance, FinTech, aircraft leasing, ship leasing, and bullion exchange have registered with the International Financial Services Centres Authority (IFSCA).
Highlighting India's digital economy as a major driver of its growth, which accounted for 11.74 percent of GDP in 2022-23, the Finance Minister informed attendees that India ranks third globally in the number of homegrown unicorns.
Additionally, she stated that India boasts a leading FinTech ecosystem, propelled by a large tech-savvy populace, favorable government policies, and an innovative startup environment.
The sector has experienced a remarkable surge in FinTechs over the past five years, evidenced by an impressive 87 percent adoption rate compared to the global average of 64 percent and a 15 percent share of global FinTech funding.
The Union Minister also engaged in a fireside chat discussing the ‘Opportunities and challenges for India’s goal to become a developed economy by 2047’ at the India House in London.
