For global banking giants, India no longer feels like a tough market to crack. The world’s fifth-largest economy is now seen as one of the most dependable and promising destinations for expansion. At the Business Standard BFSI Insight Summit this week, top executives from Citi, HSBC, and Standard Chartered banks shared one key takeaway: India’s regulatory landscape has shifted gears.
Years of policy refinement, stronger market infrastructure, and a steady economy have created a sense of predictability that global institutions crave. The result is a fresh wave of confidence among foreign banks looking to deepen their roots in Indian financial markets.
A new-regulation confidence
What stood out at the summit was how warmly the CEOs spoke about regulators—a rare tone in banking circles. P D Singh, chief executive of Standard Chartered Bank for India and South Asia, described India’s approach as “positive disruption.” He said the regulators are focused on making business easier, not harder.
This shift is mainly due to how the Reserve Bank of India has opened up new opportunities for foreign banks. The central bank now allows them to participate in acquisition financing, an area that was largely off-limits in the past. For players like Citi and HSBC, the move expands the playing field significantly.
K Balasubramanian, who heads Citi India, believes the change will deepen the country’s capital markets. “If you had to choose one place to do business today, it would be India,” he said. In his view, the ability to tap into local liquidity and the clarity of rules make India uniquely attractive at a time when many economies are wobbling.
Capital looking for a home
The optimism isn’t just just because of easing regulations. There is also an unmistakable flow of global money searching for scale—and India fits the bill. Balasubramanian pointed out that investors from Japan, the Middle East, and Canada are seeking long-term exposure to India’s growth story. For many of them, this market offers both size and structure.
Hitendra Dave, CEO of HSBC India, agrees. He referred to India’s macroeconomic resilience as a decisive factor. “Given the steady GDP growth, demographic strength, and stability of governance, India will continue to hold its place among the world’s most significant markets,” he said. The country’s well-regulated financial system, he added, has become a magnet for cautious but ambitious global investors.
A market on the move
Another reason for rising enthusiasm is the vibrant activity in Indian capital markets. The ongoing wave of initial public offerings has brought a new layer of opportunity for foreign banks eager to participate in primary deals. Dave called the IPO surge “a fantastic opportunity,” noting that 2025 could turn out to be India’s biggest IPO year yet.
Meanwhile, Balasubramanian pointed to a quieter but equally important trend: Shift in household savings. More Indian families are moving from gold and real estate toward financial assets. This “financialisation of savings,” as he termed it, has built a deep well of domestic capital that continues to fuel both primary and secondary markets. Even as foreign investors occasionally pull back, Indian retail investors have kept market sentiment solid.
For the global banking community, India now offers what few markets can: Regulatory trust, capital depth, and long-term stability. From acquisition financing to equity markets, every layer of the financial ecosystem is becoming more accessible and more sophisticated.
The overall message from the summit was simple but powerful. Global banks are no longer just managing Indian operations—they’re planning to grow with India. With resilient fundamentals and a regulatory climate that encourages innovation, the country seems well on its way to becoming the focal point of the next phase of global banking expansion.
