Post Covid-pandemic, global economy is reeling under significant economic slowdown amid the outbreak of a war in Europe, subsequent energy shocks and rising inflationary levels, forcing central banks around the world to tighten their policy rates. A major silver lining has been the stronger-than-expected economic recovery in India, which is set to end 2022 as Asia’s fastest growing economy. The country’s calibrated approach in tackling the pandemic has put us on a strong footing to tackle the ensuing economic and financial challenges.
In this background, we are pleased to release the CII-KPMG report that seeks to highlight the pivotal role of NBFCs in driving sustainable economic growth in India. Given their last-mile connectivity and agile system, they have played a major role in the country’s economic transformation. They have hugely improved the access to credit for the country’s vast unorganized sector. Aided by government’s thrust towards digital economy, NBFCs have also undertaken significant digital transformation, invested in AI and technology platforms, leveraged data analytics for personalized products and services and ensured faster disbursement of credit. As India strategizes post-pandemic economic recovery through fiscal measures and businesses aim to expand capacities, NBFCs have a huge opportunity to grow their balance sheets in the coming decade. The report also talks about the growing digitalization in the sector, emerging business models e.g. peer-to-peer lending, opportunities in the wake of government initiatives such as ONDC network and other aspects such as ESG, Tech risk, Fraud risk etc. Towards achieving the noble goal of ‘Aatmanirbhar Bharat’ and India becoming a USD 5 trillion economy by 2025, NBFCs have a major role in accelerating the flow of credit to businesses and households.
