Dear Readers,
As Diwali and the New Year arrive, it’s a wonderful time to reflect on the remarkable year that has passed for India’s economy, the Banking and Financial Services Industry (BFSI), and businesses across both online and offline sectors.
Economic Resilience and Growth
This year has shown India’s resilience on the global stage, with the GDP growing by an impressive 7.6% in the recent quarter, a notable increase over last year. Despite the challenging international environment, India remains one of the world’s fastest-growing economies. The World Bank highlights India’s standing as the second-fastest-growing economy among G20 nations, projecting sustained growth rates of 6-7% annually for the next few years.
This year also saw India’s financial and real estate sectors contributing significantly, with overall industrial production peaking at a 16-month high in October. The manufacturing and mining sectors showed robust performance, underscoring the country’s resilient economic foundations and setting the stage for continued growth in the coming year.
BFSI Sector Transformation
The BFSI sector has been at the forefront of transformation, growing by over 30% this past year and embracing new technologies like AI, blockchain, and cybersecurity. Digital banking has surged, with 100% of rural account openings now done digitally, while credit growth saw a high of 75.8%, fueled by robust lending in services, industry, and agriculture. Banks have expanded their digital reach with over 1.5 million micro ATMs now installed, significantly boosting rural access to banking services.
The sector’s journey towards inclusivity has also been notable, with initiatives like the Pradhan Mantri Jan Dhan Yojana helping reach over 500 million individuals, thus advancing financial accessibility across all income groups. As digital infrastructure strengthens, India’s digital lending market is set to reach a staggering $720 billion by 2030, becoming a major part of the $1.3 trillion lending landscape in the country.
Digital Economy and E-commerce Surge
For online businesses, the rapid adoption of digital payments has been transformative. UPI transactions reached new highs, with monthly volumes consistently crossing 10 billion. The festive season alone saw billions of rupees in digital transactions, making e-commerce a central player in India’s economic ecosystem. The fintech industry continues to expand, with over 2,000 startups contributing to India’s position as a global digital finance leader, poised to reach a valuation of $150 billion by 2025.
Retail and Consumer Growth in the Festive Season
The Diwali season brought significant growth in retail, with an estimated 25% increase in offline sales in metros and small towns alike. This surge, combined with the booming digital retail sector, highlights the diversity in India’s consumer market. Online retail grew by 20%, driven by festive discounts and easy access to digital payment solutions.
Forever News: Sustaining Our Mission Amid Challenges
Here at Forever News, our goal is to bring you fair and thorough reporting in a fast-evolving world. Yet, the road to sustainability for independent media is often tough. Advertising revenue, vital to our operations, is not always stable, and delayed payments from advertisers, including government entities, add to the financial strain. Despite these challenges, we are driven to continue providing quality journalism because of readers like you who believe in our work. Our commitment to responsible journalism remains firm, even in a climate that can be financially uncertain.
Looking Forward
As we step into the New Year, India’s trajectory remains promising. The economy is well-poised for continued growth, supported by a robust private sector, strong policy reforms, and innovative digital infrastructure. India’s growth story is one of resilience, adaptability, and ambition—a fitting reflection of the spirit of Diwali and the New Year.
Wishing you all prosperity and success in the year ahead.
Forever News Team
