Building a Skilled Financial Workforce for Viksit Bharat 2047

Building a Skilled Financial Workforce for Viksit Bharat 2047

As Bharat progresses towards 2047, the realization of the Viksit Bharat vision will be driven by the collective strength of its people, industries, and financial institutions. One of the key pillars of this transformation is robust capital investment, which is essential for sustaining a nominal GDP growth rate of 11-12%. Achieving this economic milestone requires a consistent influx of investments into infrastructure, industry, and innovation, ensuring long-term economic stability and growth.

The Need for Capital Investment

A study conducted by the State Bank of India (SBI) estimates that to maintain an average real GDP growth rate of 8-9%, India will require ₹1,094 lakh crore in capital investments by 2036. Of this:

• • ₹323 lakh crore is expected to come from banks.
• • ₹643 lakh crore must be generated through equity markets.

 

This represents an unprecedented demand for equity financing, signifying a historic shift in India’s financial landscape. Traditionally, investors have remained dependent on banks to raise funds. The banking system in the country has been useful in meeting credit demand but going forward equity will have to be used to raise financial resource required for rapid growth. Equity financing spreads risk among investors, reducing the burden on financial institutions while fostering a more resilient economic framework. Additionally, this shift will help create a strong base of retail investors, enabling broader public participation in India’s economic growth story and supporting the vision of Viksit Bharat.

The Role of Equity Markets in Capital Formation

To meet these financial requirements, India’s equity markets must expand substantially, particularly through Initial Public Offerings (IPOs). The scale of fund mobilization required is unprecedented, surpassing all previous records. The rapid rise in IPO activity in recent years reflects this growing trend:

• • 2024: Over 317 IPOs, raising ₹1.8 trillion (a record-breaking figure).
• • 2021: ₹1.3 trillion.
• • 2023: ₹57,600 crores.

 

In fact, in 2024, as per the WFE report, India bucked the global trend as far as IPOs were concerned. The capital raised through IPOs in 2024 worldwide recorded a slight downtick (-0.8%) on 2023. Globally, the number of IPOs was at its lowest in 2024, with markets welcoming only 1,133 IPOs in the calendar year.

Given the country’s current economic trajectory, this momentum must continue. A substantial increase in public listings across diverse industries is crucial for fuelling India’s growth aspirations. To achieve this, companies need access to well-structured financial advisory services, efficient capital market execution, and compliance with regulatory frameworks—all of which require a specialized and highly skilled workforce. Role of institutions such as Merchant banks and Underwriters will become important in the years to come.

The Demand for Skilled Professionals in Capital Markets

The rapid expansion of India’s capital markets has led to a growing demand for skilled professionals capable of handling complex financial transactions, regulatory compliance, and investor relations. As companies prepare to go public, they require expertise in:

• • SEBI-regulated activities such as IPOs, Further Public Offerings (FPOs), OFS, open offers, buybacks, and delistings.
• • Financial structuring and advisory services, including capital raising, due diligence, and investment strategies.
• • Regulatory compliance, governance, and risk assessment to ensure smooth execution of transactions.

 

With the increasing complexity of financial markets, there is an urgent need for Merchant bankers, financial analysts, market intermediaries, and compliance experts who can navigate the regulatory landscape, assess market risks, and facilitate efficient capital formation. Merchant banking in India plays a vital role in financial advisory and capital raising, as it facilitates mergers, acquisitions, and IPOs, making Merchant banking indispensable for growing businesses in the dynamic Indian market.

Bridging the Skill Gap Through Focused Learning

To develop a robust talent pool for India’s financial markets, focused learning programs are essential. These programs should be designed to equip professionals with:

• • Specialized knowledge of capital markets and regulatory requirements.
• • Hands-on experience with IPO management, Investment banking, and market operations.
• • Practical training in financial modelling and pricing of assets.
• • Mentorship initiatives led by industry experts to ensure real-world applicability. For instance, helping participants understand how Investment banking helps in growth of capital market.

 

By fostering a highly skilled workforce, India can strengthen its financial markets, ensuring that companies raise capital efficiently (suitably aided by Investment bankers) and investors gain confidence in market stability. This will not only accelerate entrepreneurial growth but also attract global investments, positioning India as a leading global financial hub.

Towards a Stronger Financial Future

As India embarks on this journey towards Viksit Bharat 2047, a clear vision, industry expertise, and a well-developed financial system will be crucial. By deepening capital markets, fostering innovation, and nurturing financial talent, India can position itself as a global economic powerhouse.

A resilient and prosperous economy, backed by a strong financial ecosystem and a highly skilled workforce, will ensure that Bharat emerges as a leader in the global financial landscape. This will create immense opportunities for future generations, fulfilling the promise of a self-reliant, economically vibrant, and financially inclusive India.