Union Finance Minister Nirmala Sitharaman has brought India into the limelight as a more desirable destination for foreign banks and financial institutions, highlighting the government's aggressive initiative to attract foreign investment in the nation's growing financial sector.
Addressing the India-UK Investor Roundtable in London on Tuesday — when close to 60 delegates from pension funds, insurers, banks, and other players from the finance sector were present — Sitharaman outlined India's strategic priorities to promote sustainable growth and an investor-friendly environment.
The Finance Ministry said that Sitharaman emphasized the government's intention to bring regulatory reforms in order to ease compliance and increase policy stability. "We are making deliberate attempts to let policy stability and regulatory ease walk together," she said.
Projecting India as an insurance power of the world, the Minister pointed out that the nation is likely to be the world's sixth-largest insurance market by 2032 with a compound annual growth rate of 7.1% from 2024 to 2028 — one of the fastest in G20 countries.
She also mentioned India's increasingly deepening capital markets, pointing to the country's complete adoption of the T+1 settlement system in 2023. India is currently the fourth-largest market in the world with a market capitalization of $4.6 trillion (approximately £3.7 trillion).
Sitharaman marketed the GIFT International Financial Services Centre (IFSC) as a revolutionary offshore financial center providing tax incentives, talented professionals, and international transaction services. More than 800 companies across industries ranging from banking to capital markets to fintech to insurance and aircraft leasing have been registered with the IFSC Authority until March 2025.
India’s digital economy also featured prominently in her remarks. It contributed 11.74% to GDP in 2022–23, powered by a robust fintech ecosystem and widespread tech adoption. “Our fintech adoption rate stands at an impressive 87%, compared to the global average of 64%,” she noted. India also commands a 15% share in global fintech funding and ranks third globally in terms of homegrown unicorns.
Later, in a fireside chat with India House, London, Sitharaman went into the wider context of India's path towards becoming a developed country by 2047. She reiterated the nation's priority on inclusive, reform-led growth to achieve its long-term objectives.
Read also| RBI Lowers Repo Rate by 25 Basis Points, Adopts Accommodative Stance to Boost Growth
Read also| Trump Vows to Maintain Tariffs Until U.S. Trade Deficit Is Eliminated
