Viksit Bharat 2047: The Big Banking Challenge India Faces

As India moves steadily towards becoming a 30 trillion dollar economy under the Viksit Bharat 2047 vision, the role of the banking sector is coming sharply into focus. Speaking at the BT Banking Summit, Rajneesh Karnatak, MD and CEO of Bank of India, highlights a critical gap — despite strong economic momentum, India currently has only a handful of banks in the global rankings. He explains that scale, asset size and market capitalisation are key parameters where Indian banks must expand significantly.

Karnatak emphasises that for India to sustain high GDP growth, credit expansion must keep pace, often growing at nearly twice the rate of GDP. He also points out that banking alone cannot shoulder this responsibility, and calls for deeper bond markets and a broader financial ecosystem, including NBFCs, mutual funds, insurance and pension sectors. With a diverse population spanning rural to metro regions, India requires a multi-layered banking structure — from small and medium institutions to a few globally competitive giants. The discussion outlines what it will take for Indian banks to secure a stronger position globally and support the country’s long-term economic ambitions.