NABARD Chairman Shaji Krishnan has urged a sustained 9-10% annual economic growth rate to achieve India's 2047 vision. His roadmap calls for shifting rural lending from collateral-based models to cash-flow assessments and prioritizing cybersecurity to secure the country’s growing digital financial infrastructure.
To achieve the government’s Viksit Bharat 2047 goal, India must maintain an annual economic growth rate of 9% to 10% for the next two decades. This ambitious roadmap was laid out by NABARD Chairman Shaji Krishnan, who noted that achieving such a scale requires not just high investment ratios but also a fundamental change in how the nation manages its economy.
The Shift in Banking and Credit
A central part of this economic strategy is transforming how money is lent in rural and semi-urban India. Currently, much of the lending landscape relies on collateral—assets that borrowers pledge to secure loans. Krishnan argued that to boost productivity and reach a wider segment of entrepreneurs, financial institutions must move toward cash-flow-based lending. This approach assesses a borrower’s ability to repay based on their actual income and business potential rather than just physical assets. By adopting this model alongside value-chain financing, banks could provide better credit access to MSMEs and rural businesses, which are critical drivers of domestic productivity.
Cybersecurity as National Infrastructure
As India’s financial sector undergoes massive digitalization, the focus on innovation must be balanced with resilience. The NABARD Chairman emphasized that cybersecurity is no longer just an IT issue but a core component of national economic infrastructure. Smaller financial institutions and cooperative banks, which often lack the deep pockets of major commercial banks to invest in advanced security systems, are at greater risk of cyber threats. Krishnan warned that vulnerabilities in these smaller entities could create systemic risks, potentially impacting the stability of the broader financial network if not addressed through robust, shared security protocols.
Regional Liquidity and Economic Growth
Highlighting regional economic potential, the discussion also touched upon areas like Kerala, which showcases how strong liquidity can drive enterprise. With over ₹10.6 lakh crore in commercial bank deposits and a healthy credit-deposit ratio, the region serves as a case study for leveraging savings into high-value sectors. The goal, according to the chairman, is to diversify regional profiles away from traditional industries and toward modern sectors like healthcare, tourism, and specialized finance.
For the Indian banking and financial sector, the key monitorable remains the pace of formalization of the cash economy. As the regulator moves toward stricter digital standards and more nuanced lending assessments, institutions will need to balance the push for rapid credit growth with the necessity of maintaining high-quality loan books and secure digital ecosystems. The success of this transition will likely determine whether the country can sustain the momentum required to meet its long-term economic objectives.