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Healthy,
vibrant
The financial sector in India is characterised by liberal and progressive policies, vibrant equity and debt markets and prudent banking norms. India has a transparent, highly technology-enabled and well-regulated stock market defined by the most modern, nationwide, on-line screen-based trading system (SBTS), a T+2 rolling settlement system and a market cap of US$1.6 trillion as on 30th December 2007. With the largest number of listed companies - 10,000 - across 23 stock exchanges, India has the third largest investor base in the world. The country also has a vibrant and modern commodities exchange market ranking among the top 3 global markets in terms of traded volumes and trades totalling over US$650 billion in 2006-07. NCDEX, MCX and NMCEI are the major national exchanges with a diversified portfolio of commodities that include agri-products, bullion, metals and energy. The exchanges offer future contracts and India was the first to provide trading in steel futures. India’s healthy banking system with a network of 70,000 branches is among the largest in the world. Aggregate deposits of commercial banks were about US$445 billion in June 2007 (50% of GDP) and the total bank credit stood at US$320 billion in June 2007 (36% of GDP). NPA levels of banks in India are under 3%, one of the lowest among emerging nations. The banking system is Basel I-compliant and moving towards Basel II norms. The Reserve Bank of India (RBI), the country’s central bank, has effectively managed the country’s monetary policy over the last five decades. The country’s current Prime Minister, Dr. Manmohan Singh is a former Governor of the Reserve Bank of India and a former Finance Minister. India’s financial sector has been one of the fastest growing sectors in the economy. It has also witnessed increased private sector activity including an explosion of foreign banks, insurance companies, mutual funds, venture capital and investment institutions. |
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India- the fastest growing free-market democracy
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