India needs to develop deeper debt markets and reduce its reliance on bank deposits to achieve its economic growth targets by 2047, according to a Deloitte report. The study highlights the necessity for policy and market frameworks to evolve in order to improve credit penetration and strengthen capital allocation, aiming to support sustainable economic expansion over the next two decades, the Economic Times reported.
The Deloitte report emphasizes that credit growth in India will increasingly depend on more efficient debt markets rather than traditional bank deposits. It calls for enhancements in monetary policy transmission and the establishment of frameworks that facilitate better access to credit. These changes are seen as critical to supporting the country’s long-term economic ambitions and ensuring that capital flows more effectively to productive sectors, according to bfsi.economictimes.indiatimes.com.
This focus on deepening debt markets comes amid India’s broader economic reforms aimed at boosting investment and growth. Compared to other emerging economies, India’s debt markets remain underdeveloped, which limits the availability of diverse financing options for businesses and infrastructure projects. Strengthening these markets could help India mobilize domestic and foreign capital more efficiently, aligning with its 2047 vision to become a $30 trillion economy.
The Deloitte report outlines specific policy measures required to facilitate this transition, including reforms to improve credit market infrastructure and regulatory frameworks. These steps are intended to enhance credit penetration and capital allocation efficiency, which are essential for India’s sustainable economic growth trajectory through 2047, as detailed by bfsi.economictimes.indiatimes.com.