Decades after the world witnessed the Great Depression of the USA, in 1929, the world was to experience yet another massive financial crisis and downfall in 2008. There was chaos across the globe as people lost trust in their banks and the banking system. Even the subcontinent had to battle surviving in the troubled waters. However, the crisis also served as a wonderful opportunity for learning in surviving in unforeseen conditions to the banking sector.
The Indian banking sector remained robust and this led to the economy of the nation leaving a sigh of relief as the nation could swim against the rough tides and survive the tough times efficiently.
It has been over six years since this scenario has persisted and the fear of crisis still hovers over the world nations. The developed and developing nations alike was groped in the fear of the economic and financial crisis that has been deep seated in the modern times.
Although the subcontinent was affected with the crisis, it managed to escape relatively unscarred. However, the nation over the past few years has been heading towards a doom, with a significant decline in the performance of the rupee on par with the dollar, resulting in the high interest rates and the soaring inflation.
For the nation to get back from its crisis, it requires the growth rate to resume back to the previous figures of 8 percent, the banking sector and by the extension of the financial sector as well would have to have a growth rate of at least twice the current GDP growth rate.
Corporate India, due to the high interest rates and the economic slowdown having been striving to survive and grow, which is also reflected in the increasing NPAs of banks that are driven largely by the corporate clients rather than on their retail clients.
While the industry looks to revamp its growth by reaping the benefits of the small green-shoots of the economic activity, it is equally also imperative for the financial sector to expand in tandem to meet the growing needs of corporate India. As industry grows and expands across the nation, many financial institutions are now expanding their base to beyond traditional metropolitan cities.
South India is a telling example. With property prices increasing in Delhi and Mumbai, many industries have relocated their headquarters to any of the four states of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu. The Chennai – Bengaluru and the Bengaluru – Mumbai industrial corridors are further attractions. It is also well documented that cost of doing business in South India is cheaper.
This has resulted in the burgeoning of many financial sector companies in the South. While corporate India’s requirements of the financial sector are by and large the same, some of the demands, depending on the sectors and the region, may be a little more nuanced. It is in this context that Federation of Indian Chambers of Commerce and Industry has conceived the two-day Financial Sector Conclave.
The Conclave will address these nuances of specific sectors in South India. The Conclave will deliberate on the recent paradigm shifts that have taken place in the financial sector in South India. It would bring together the corporate India, the bankers and others from the financial sector community from the South to deliberate on how to work together and in tandem to bring about a more streamlined and inclusive path to development that will help India once again achieve an 8 per cent growth rate.