BFSI Sector Urged to Drive Infrastructure and Advanced Manufacturing Funding

Strategic Financing for Viksit Bharat 2047

At the Business Standard BFSI Insight Summit 2026, Principal Secretary-2 to the Prime Minister, Shaktikanta Das, emphasized that the banking, financial services and insurance (BFSI) sector must transition from traditional corporate lending to long-term capital formation. This pivot is essential for India to achieve its goal of becoming a developed economy by 2047.

Core Priority Areas

Das outlined six critical areas requiring enhanced engagement from financial institutions:

• Infrastructure Financing: Utilizing structured consortiums and corporate bond markets.
• Advanced Manufacturing: Channeling credit toward semiconductors, electronics, and defence production.
• Green Finance: Supporting transition finance, green hydrogen, and renewable infrastructure.
• Financial Inclusion: Extending credit to MSMEs and farmers through technology-based assessments.
• Digital Public Infrastructure: Leveraging the Unified Lending Interface (ULI) for broader reach.
• Sustainable Markets: Expanding municipal bonds and pension-linked products.

Macroeconomic Stability

Despite global shocks including the war in Ukraine and volatile commodity prices, Das noted that India’s financial sector remains resilient. Key indicators of current stability include:

• Asset Quality: Gross NPA ratios dropped to a multi-decadal low of 1.8% as of March 2026.
• Credit Growth: NBFCs reported 16.6% credit growth, while industrial bank credit increased by 20% year-on-year.
• Corporate Health: Interest coverage ratios for companies improved to 6.5% in Q4 FY26.

Das concluded that while household debt requires monitoring, the overall financial architecture must deepen to support sustained economic growth. Future efforts will focus on achieving universal insurance and asset-backed pension schemes by 2047.