The Indian economy is currently recovering from the phase of sluggish growth and is characterized by tangible progress towards fiscal consolidation and strong macro-economic fundamentals. The stable government formed in the 16th Lok Sabha elections has acted as a catalyzing agent for uplifting the Indian sentiments by promising stability in providing good governance and the fundamental solutions to present day economic issues. The Make in India campaign, government’s initiative on bringing regulatory reforms to facilitate ease of doing business in India, thrust towards growth of infrastructure sector and financial inclusion will also demand NBFCs to shoulder the growth and development phase,
India is seemingly walking into. NBFCs in India have been complimenting the banks in rendering financial services and over the last few years have also been instrumental in bringing about financial inclusion in the country. NBFCs have a critical role playing in infrastructure financing, micro lending, assetbacked lending, factoring and have a network which is far wider and granular than banks in some cases. NBFCs accounted for 13% of the banks assets as on 31st March, 2013. While the NBFCs assets as a percentage to GDP has increased from 8.4 per cent in 2006 to 12.5 percent in 2013, the NBFC sector has a share of 8% in the total financial sector assets of the Indian economy.
To view the full report, click here