A STUDY ON FINANCIAL STABILITY AND ECONOMIC GROWTH IN INDIA AFTER 2020

Financial stability has become an important foundation of India's economic growth during the post-2020 period. The study demonstrates that India showed considerable resilience after the COVID-19 pandemic through timely fiscal and monetary interventions, banking-sector reforms, digital financial transformation, financial inclusion, and strengthened regulatory measures. The analysis indicates that GDP growth recovered after the severe contraction in 2020, while declining NPAs and improving capital adequacy reflected stronger banking-sector resilience. Expansion of digital payments and financial inclusion increased access to formal financial services and supported wider economic participation. Stable foreign investment and strong foreign-exchange reserves further strengthened India's capacity to manage external uncertainties. At the same time, inflation, geopolitical tensions, cybersecurity threats, climate-related risks, and global financial volatility remain important challenges. Therefore, continued policy coordination, effective financial regulation, sound risk management, digital security, financial literacy, and sustainable investment practices are necessary. Overall, maintaining a resilient, inclusive, and technologically capable financial system will remain essential for supporting India's long-term economic growth and sustainable development.

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