Bajaj Finserv chairman and managing director Sanjiv Bajaj on Friday called for a broader distribution of banks and financial services, rather than limiting those to just a few major cities. This requires improving penetration and encouraging innovation in banking to reduce unit costs and manage risks effectively.
Highlighting the importance of India becoming ‘atma nirbhar’ in the banking and financial services sector, Bajaj said the country should not entirely rely on external capital, but focus on channelling domestic savings into productive assets, which would create a multiplier effect on the economy. The government and regulators will need to carefully balance growth, inflation and currency stability. He was of the view that a country with a per capita income of $2,700 does not require a strong currency, but needs to make exports cheaper and drive growth.
Bajaj made these remarks during a fireside chat with Rama Bijapurkar at the Asia Economic Dialogue 2025, organised by the Ministry of External Affairs and Pune International Centre. He said changes in the US could trigger the next wave of liberalisation in India. The liberalisation of 1991 helped India achieve a growth rate of 6-7% over the last 25-30 years. However, considering the country’s population size, India needs to grow at 8-10% over the next 20 years, he said.
He pointed out that announcements made by US President Donald Trump would likely have both tactical and strategic long-term impacts. While some upheaval might occur, it could ultimately be beneficial for India, he said. “We have to unshackle ourselves and be globally competitive,” Bajaj said. He emphasised that the advantage of having a large middle class would come into play.