New Delhi, Jan 31 (Reporter) India's financial sector is witnessing a moment of positive flux and the dawn of a new era but emerging trends like 'financialisation' wherein financial markets influence policy and outcomes need to be closely monitored, as per Economic Survey 2024-25 tabled in Parliament on Friday. "One critical risk to guard against is the dominance of financial markets in shaping policy and macroeconomic outcomes, a phenomenon known as 'financialisation.' The consequences of financialisation are evident in advanced economies, where it has led to unprecedented levels of public and private sector debt— some visible to regulators and some not," the Survey said. The survey said that as India strives to align its financial system with its economic aspirations for 2047, it should strive to maintain the fine balance between financial sector development and growth on the one hand and financialisation on the other. "It means that the country has to chart its path with respect to its context, considering the levels of financial savings in households, its investment needs, and levels of financial literacy. Ensuring that incentives in the sector are consistent with national growth aspirations is a policy imperative," the key government document concluded. As per the Survey, India’s financial sector has performed well amidst unfavourable geopolitical conditions. Strong macroeconomic fundamentals, healthy corporate earnings, supportive institutional investment, robust inflows from SIPs (systematic investment plan), and increased formalisation, digitisation, and accessibility have all fuelled the market's continued growth. The survey noted that there is a rise in the share of consumer credit in overall credit extended by banks. Between FY14 and FY24, the share of consumer credit in total bank credit increased from 18.3% to 32.4%. Over the years, equity-based financing has catapulted to popularity, with IPO listings growing six times between FY13 and FY24 and India being ranked first globally in terms of the number of IPO listings in FY24. "Young investors are also driving the equity boom under the age of 30. As a report by the NSE notes that between March 2018 to September 2024, the proportion of young investors surged from 23 per cent to 40 per cent," the Survey said...////...