The Indian economy is an emerging force in global trade, competition and international investment. In the past decade, along with China, it has set the pace for global economic growth – the economic reforms of 1991 have driven India’s annual gross domestic product (GDP) growth to more than 7%. It is predicted that by 2050 the Indian economy will be five times the size of Japan’s, and its per capita income will have risen to 35 times its present level.
In such a rapidly developing economy, the governance of the banking sector is critical for long-term growth. Financial markets are less mature in developing economies, and banks are the key sources of finance for the majority of corporations. Banks are also the main depository for the economy’s savings.
