The government has estimated that $40 trillion of bank credit will be required to meet the needs of a $30 trillion economy under its Viksit Bharat plan of 2047. Currently, banking system credit is estimated at about $2 trillion–$2.25 trillion at the current exchange rate, while the size of the economy is estimated at $3.73 trillion.

From $2 trillion or thereabouts, bank credit will need to grow almost 20 times in 21 years or so.

The DFS Secretary observed, “$40 trillion outstanding non-financial credit would be required in 2047 to reach the Viksit Bharat goal. That means credit has to grow at an average of 13.3% annually. And then the GDP, to reach $30 trillion, has to have a CAGR of almost 9.3%.”

The government’s view is that even with the current regulatory capital norms, banks are es

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