India's economic progress, which is largely dependent on the Financial Sector, is not only a key factor of stability in the global economy, but also a source of immense economic opportunity for the world. The far-reaching changes in the Indian economy since liberalization in the early 1990s have had a deep impact on the Indian financial sector. India’s financial sector has been one of the fastest growing sectors in the economy. The economy has witnessed increased private sector activity including an explosion of foreign banks, insurance companies, mutual funds, venture capital and investment institutions. The various steps taken by the government and the regulators since liberalization to meet the challenges of a complex financial architecture have ensured that a new face of the Indian financial sector is emerging to culminate into a strong, transparent and resilient system.
Several new instruments and products have been introduced. Existing sectors have been opened to new private players. The entry of new players has led to existing players upgrading their product offerings and distribution channels. Financial intermediaries too have gradually moved to internationally acceptable norms for income recognition, asset classification, provisioning and capital adequacy. This has given a strong impetus to the development and modernization of the financial sector. Going forward the aim would be to achieve international standards in this area within the shortest possible time frame. With this firm resolve, FICCI’s Financial Sector aims to facilitate a comprehensive forum for dialogue between India Inc. and policy makers thereby aiming to provide necessary directions to all stake holders and business processes.