IMF-India: Financial Sector Assessment Program-Financial System Stability Assessment

February 28, 2025-Summary
India's financial system has withstood the pandemic well and has become more resilient since the 2017 FSAP. Nonbank financial institutions (NBFIs-especially nonbank financial companies (NBFCs) providing credit with wholesale financing-and market financing have grown, making the financial system more diverse and interconnected.

The role of the state has diminished, yet it remains significant, including in using the financial system to pursue social and public finance goals.