India to become $5 trillion economy by 2028: Himal K Parikh

India is poised to become a $5-trillion economy by 2028 because of four 'D's – democracy, demography, demand and digitalisation, according to Himal K Parikh, President of IIM-A Alumni Association. He said formalisation of economy (DEMO, GST, RERA), insolvency and bankruptcy code, Jandhan accounts, Aadhaar, mobility, democratisation of credit (Mudra scheme) would be the other contributing factors. Parikh, who is also the CEO and Founder-Director of Interface Capital Markets, made the statement during an international conference at Gujarat Technological University (GTU).

Addressing the students, Parikh said: "But for faster development, it lacks discipline. Otherwise there is humongous growth opportunity and corporate governance in financial services sector will help the sector be faster, higher, bigger, stronger and safer."

The two-day conference was organized by GTU's Post Graduate Research Centre For Governance Systems along with BK School Of Business Management. The fifth chapter of the conference was on "Governance in Indian Financial Services Sector: Reforms and Remedies" this year.

Amal Dhru, ex-President, IIM-A alumni association said: "The size of this sector is huge. Bank deposits are nearly Rs 100 lakh crores and so are the problems. Nearly Rs 10 lakh crores are non-performing assets. This means nearly 10% of our deposits are locked up in NPAs. Lack of proper sanctioning and monitoring, wrong assessment of credit worthiness, lack of managerial skills, business uncertainties corruption, etc, are only some of the factors leading to pile-up of NPAs. The sector is vulnerable to KYC-related frauds, technology-related frauds and advances-related frauds. At least Rs 10,000-crore worth frauds are detected every year. This number will sky rocket in the near future, as it appears. Corporate Governance, Rules and Regulations, Enactments, etc, have a role to play. Quick resolution of punishable acts is a must. Ethics go beyond rules and regulations. No one is born ethical or unethical. It is the environment, social acceptance and the lack of controlling infrastructure that paves way to unethical practices."

GTU CONFERENCE

The two-day conference was organised by GTU’s Post Graduate Research Centre For Governance Systems along with BK School Of Business Management.