India’s Financial Growth Hinges on Household Savings and Trust
India’s next phase of financial development will depend not only on deeper capital markets but also on bringing a larger share of household savings into the formal financial system, Department of Economic Affairs Secretary Anuradha Thakur said at the 13th SBI Banking & Economics Conclave. She said India has built stronger institutions and increasingly transparent capital markets, while initiatives such as GIFT-IFSC are creating foundations for an international financial centre.
Thakur highlighted household savings as a significant opportunity for further financialisation and said economic size alone does not determine global financial leadership. According to her, established financial centres such as London and New York developed over decades as institutions, markets and financial systems built sufficient credibility for others to rely on them. For India, greater participation of domestic savings in financial markets, alongside stronger institutions and deeper markets, will be important for attracting and retaining capital.
She also said India’s position in global economic governance is moving from having a greater voice to greater influence in shaping global agendas. The broader message is that India’s financial ambitions will depend on the combined strength of household financial participation, market depth, institutional credibility and trust in the country’s financial system.
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