News | NBFCs Can Double Growth by 2030 with Strategic Shift in Scale: Tamil Nadu Government Official

NBFCs Can Double Growth by 2030 with Strategic Shift in Scale: Tamil Nadu Government Official

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24 May 2025

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India’s non-banking financial companies (NBFCs) have the potential to double their growth trajectory by 2030, provided they reassess their approach to scale and innovation, according to a senior official from the Tamil Nadu government.

Speaking at a recent financial sector forum, Tamil Nadu's Secretary for Industries, Investment Promotion and Commerce emphasized the importance of reimagining growth beyond traditional geographic and sectoral boundaries. He noted that NBFCs must pivot from simply expanding loan books to creating agile, tech-enabled models that can serve both urban and underserved rural segments with equal efficiency.

“NBFCs have shown resilience over the past few years, especially during and after the pandemic,” the official said. “But to unlock their full potential, they must rethink what scale means in today's economy. It's not just about size; it’s about reach, adaptability, and impact.”

The comments come at a time when the Indian financial ecosystem is witnessing rapid digitization, with fintech collaborations reshaping the way credit is accessed and delivered. The official urged NBFCs to adopt technology-driven platforms to optimize operations, lower costs, and expand inclusivity.

Tamil Nadu, which has emerged as a leading state in attracting investments in manufacturing and services, is also positioning itself as a hub for financial innovation. The Secretary highlighted several state-led initiatives aimed at fostering an enabling environment for NBFCs and fintech startups, including regulatory support, digital infrastructure, and public-private partnerships.

Industry experts agree that while NBFCs have played a crucial role in financial inclusion—especially for small businesses and lower-income households—they now face mounting pressure from both fintech disruptors and regulatory scrutiny.

“To sustain momentum, NBFCs need to focus on strategic alliances, invest in data analytics, and move beyond conventional loan models,” said a Chennai-based financial consultant. “The future belongs to players who can scale responsibly and deliver credit efficiently at the last mile.”

With a growing demand for credit across MSMEs, agriculture, and consumer finance, the sector's growth potential remains robust. But experts warn that without a clear roadmap for innovation and responsible expansion, NBFCs risk losing relevance in an increasingly competitive financial marketplace.

Reference: Economic Times