Financial sector outlook appears bright, but needs tight vigil on vulnerabilities: Economic Survey 2023-24

The Economic Survey 2023-24 indicates a promising outlook for India's financial sector while cautioning against over-financialisation. It highlights a crucial transformation with a growing role for capital markets and diminishing banking dominance. The survey emphasizes the need for regulatory vigilance to mitigate vulnerabilities and support sustainable growth. Additionally, it underscores the importance of expanding financial services to promote investment, support MSMEs, and enhance financial inclusion. The survey also envisions India's evolution into a leading fintech nation with robust digital infrastructure and advanced technologies like AI/ML.