Home / Business and Economy / India's $30 Trillion Economy Goal Demands $40 Trillion in Bank Credit by 2047
India's $30 Trillion Economy Goal Demands $40 Trillion in Bank Credit by 2047
11 Nov
Summary
- India needs $40 trillion in bank credit to reach $30 trillion economy by 2047
- Banks require $4-$5 trillion in capital to support this growth
- Government considering new bank licenses and NBFC upgrades to meet credit needs
According to the Indian government's projections, the country's economy is set to reach $30 trillion by 2047. To fuel this ambitious growth, the government estimates that the banking sector will need to provide $40 trillion in credit over the next 21 years.
Currently, the Indian banking system's total credit is around $2-$2.25 trillion, while the economy's size is estimated at $3.73 trillion as of 2025-11-11. This means that bank credit will need to grow almost 20-fold to meet the government's 2047 target.
To support this massive credit expansion, the government calculates that banks will require over $4 trillion in capital by 2047 if they maintain the current regulatory capital norms. If the capital adequacy ratio is increased to 14%, the capital needs could grow to over $5 trillion.
Recognizing the challenge, the government is considering options to expand the banking sector, including issuing new bank licenses and allowing some non-banking financial companies (NBFCs) to upgrade to universal banks. The government believes this will be necessary to sustain the envisioned $40 trillion in bank credit and the required number of bank branches and institutions.
