Covid-19 Paralyzing the Backbone of Indian Economy

Abstract

The Indian government's three-decade-old economic reforms altered the terrain of various sectors of the Indian economy. The banking sector was no exception. As a result of reforms, this industry has seen significant changes. The banking sector plays vital role because it provides one of the most critical services for a developing economy. India is one of the largest economy in the world and its US$ 2.52 trillion1 banking industry is the backbone of the Indian economy. The sector recovered well from global financial crisis and demonstrated its resilience when the industrialized economies were affected. The banking sector in India is booming, thanks to the government's efforts to increase financial inclusion. Today service sector contributes half to Indian GDP and banking makes up chunk of it. India must continue to exploit the growth of banking sector which will help in achieving the distant goal of becoming a developed economy.