Deepen domestic credit to enhance financial stability
From the onset of the pandemic, our government, regulators and the financial sector came together purposefully to ensure credit continued to flow not just to traditional sectors, but also to newer and more accretive segments such as the MSMEs
India’s economy has emerged as a beacon with 6.8–7.0% growth expected in fiscal 2022-23, even as the world’s largest economies face a slowdown amid rising inflation and pandemic and war-related disruptions. While various factors have aided India’s resilience, it is undeniable that the financial sector has played a key role. The deepening and widening of domestic credit during this period sustained businesses while providing retail loans to support consumption-led growth. Thanks to this, India is in a position to temper the severity of a global recession.