India’ ambition to achieve a $30 trillion GDP by 2047 requires a significant transformation in the financial services sector, with the banking industry playing a central role, according to a report by Boston Consulting Group (BCG).

The report, “Banking for a Viksit Bharat,” was released at the FICCI-IBA annual conference, highlighting the pivotal position banks must hold to drive the nation toward this ambitious goal.

India, a predominantly bank-led economy, will rely on its banking sector to anchor its growth while allowing other financial asset classes to expand at a faster rate.

The financial service sector, according to the report, will need to grow 20 times to meet the $30 trillion GDP target, a formidable task that demands innovation, structural reforms, and a sharp focus on financial inclusion. 

Ruchin Goyal, Managing Director and Senior Partner at BCG and co-author of the report, pointed out that achieving this target is ambitious yet within reach. He emphasized that such an achievement will depend on how quickly and effectively the financial ecosystem adapts to new technologies, expands its reach, and integrates underserved segments into the formal financial system. 

The banking sector’s role in enabling financial inclusion was reiterated by MV Rao, Chairman of the Indian Banks Association. He stressed that the industry must prioritize creating opportunities for every individual to participate in the nation’s economic progress.

 

To support this vision, the report recommends enhancing digital infrastructure, implementing reforms for stronger governance, and encouraging a broader adoption of digital financial services.

 

Banks are also expected to leverage emerging technologies such as AI, block chain, and data analytics to increase efficiency and reduce risk. Additionally, fostering partnerships between banks and fintech companies will be crucial to widen access to financial products. 

As India marches towards its ambitious $30 trillion GDP goal, banking sector will need to not only meet the challenges of growth but also transform into a more resilient, inclusive, and technology-driven force for the country’s development.