India urges channeling household savings into formal finance to boost global financial ambitions
Economic Affairs Secretary Thakur said India's household savings still have large untapped potential for integration into the formal financial system, a step she sees as crucial for the country's long-term goal of becoming a global financial hub.
At the 13th SBI Banking & Economics Conclave 2026 in Mumbai, Economic Affairs Secretary Thakur emphasized that while India has already established key institutional and market pillars for a stronger global economic standing, a significant gap persists in channeling household savings into the formal financial sector. She argued that deeper integration of these savings would support the country's ambition to evolve into a global financial centre, a process she described as long-term and requiring sustained reforms.
Thakur also highlighted India's shifting role from seeking representation to actively shaping international economic policies, citing active BRICS discussions on payment interoperability, messaging systems, and the use of local currencies for trade. She underscored the importance of strategic resilience amid global uncertainty, noting initiatives in sectors such as semiconductors and critical minerals. Finally, she called for continued institutional and financial reforms to enhance India's resilience and its participation in a more inclusive global economic architecture.
Why it matters
Mobilising household savings can deepen India's financial markets and support its bid to become a global financial hub.
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