Indian financial sector is at a "turnpike moment", Says Economic Survey

The Indian financial sector is at a turnpike moment, said Economic Survey 2023-24 tabled in Parliament on Monday. The dominance of banking support to credit is being reduced, and the role of capital markets is rising. For a country that aspires to be a developed nation by 2047, this is a long-awaited and welcome development. Being reliant on and exposed to the capital market, however, comes with its challenges and trade-offs. As Indias financial sector undergoes this critical transformation, it must also brace for likely vulnerabilities and prepare itself with regulatory and government policy levers to intervene and hedge, as required