Indian financial mkts projected at $17 trillion: IBM

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Mumbai, September 16:: India's financial markets size was estimated to race from under USD one trillion to 17 trillion by 2025 as globalisation led opportunities shift from veteran markets to emerging markets, an IBM study said.

As per the study 'Get Global Get Specialised or Get Out,' in future, growth opportunities for the financial markets would come from new areas, as firms would find it difficult to grow revenue in the veteran markets where rivals would compete for a depleting opportunities.

"India's financial market size will grow from under one trillion dollar in 2005 to 17 trillion dollar by 2025 with over 17 per cent compounded annual growth rate," associate partner IBM Institute For Business Value Wendy Feller told PTI.

"However, India lacked some of the market sophistication like underdeveloped infrastructure and one of the highest ratios of public debt to GDP that can be a stumbling block which can hinder and halt further globalisation," Feller, who headed the study said.

India has only 17 major airports compared to 189 in the US and 56 in China, it produced just one-quarter of the kilowatt hours of electricity that China does, IBM said.

India has had one of the highest ratios of public debt to GDP of 80 per cent in 2005, 11 per cent above the second highest ratio of 69 per cent for Turkey and much above the 46 per cent average ratio across the 14 emerging markets.