Deloitte Calls For Deeper Financial Inclusion To Support India's 2047 Growth Ambitions

New Delhi, Jun 17 (KNN) India's financial services sector is entering a critical transition phase, requiring deeper credit penetration, broader financial participation and more efficient capital allocation as the country advances towards its ambition of becoming a USD 30-35 trillion economy by 2047, according to Deloitte India's State of Financial Services in India (SOFSI) report.
 
Financial Services Sector Enters A New Growth Phase
 
The report noted that the sector has expanded significantly over the past two decades, with its market capitalisation rising from around 6 percent of GDP in 2005 to nearly 27 percent in 2025. 
 
The share of non-bank participants, including NBFCs, insurers and asset managers, also increased from 15 percent to 43 percent during the period, reflecting a structural transformation of the industry.
 
Financial Inclusion Gaps Persist Despite Expansion
 
However, the report highlighted that this growth has not fully translated into wider financial participation. Around 16 percent of bank accounts remain inactive, while only about 15 percent of adults and 14 percent of MSMEs have access to formal credit.
 
According to Deloitte India, meeting the credit requirements of MSMEs would require the banking sector to be at least 30 percent larger than its current size. 
 
The report also pointed to insurance penetration remaining low at 3.7 percent of GDP and mutual fund assets continuing to be concentrated in major urban centres.
 
Deloitte Calls For Structural Reforms
 
Vijay Mani, Partner and Banking and Capital Markets Leader, Deloitte India, said the sector must move beyond legacy frameworks in technology, customer experience, market infrastructure and policy to support India's long-term growth aspirations.
 
He said reducing dependence on deposits for credit creation through deeper debt markets, improved risk transmission and more efficient pricing mechanisms would be critical, while financial inclusion for households and MSMEs must be expanded alongside stronger services for large corporations.
 
Roadmap Focuses On Capital Efficiency And Digital Infrastructure
 
The report outlined several strategic priorities for banks, NBFCs, insurers, asset managers and financial services global capability centres (GCCs). 
 
These include developing bond markets through market-led benchmarks, calibrated reserve requirements, risk-based Basel III implementation, priority sector lending recalibration and asset tokenisation to improve capital allocation.
 
It also recommended strengthening digital public infrastructure for lending, improving transparency in MSME credit tracking, enhancing fraud prevention systems and improving last-mile delivery mechanisms.
 
Emerging Technologies To Shape The Sector's Future
 
According to the report, financial institutions will need to rebalance portfolios, strengthen deposit franchises and operational resilience, while ensuring that investments in emerging technologies such as artificial intelligence and post-quantum readiness translate into higher productivity and improved customer outcomes.
 
Deloitte said the recommendations provide a roadmap for financial services participants to prepare for the sector's next phase of evolution and support India's Viksit Bharat 2047 vision.
 
(KNN Bureau)