'Indian economy more resilient and inclusive'

MUMBAI: The World Bank and IMF, in their latest Financial Sector Assessment Program (FSAP) reports on India, said the country's financial system has become more resilient, diversified, and inclusive since the previous assessment in 2017. The World Bank released its Financial Sector Assessment (FSA) report on Oct 30 while the IMF published its Financial System Stability Assessment (FSSA) in Feb 2025, following the joint evaluation conducted in 2024.

The FSA report said financial sector reforms helped India recover from earlier stress periods and the pandemic. It said that sustaining the pace of reforms will be key to achieving the country's target of becoming a $30 trillion economy by 2047, driven by higher private capital mobilisation.




According to the World Bank, India has expanded regulatory oversight to cooperative banks, tightened prudential norms, and reorganised supervisory functions to improve effectiveness. It welcomed the scale-based framework for NBFCs but called for stronger credit risk management and supervision of both banks and non-banks.

The report said the oversight of securities markets remains stable, supported by reforms such as better collateral management, liquidity norms for mutual funds, the Corporate Debt Market Development Fund, and a sustainable investment framework. It advised a more integrated approach to monitoring conduct risks, especially in the mutual fund segment, and called for higher standards for self-regulatory bodies.