The Performance and Contribution of NBFCs to the Indian Economy: Overview of NBFCs During and Post COVID-19

Abstract

The non-banking financial sector of the Indian economy plays a significant role in growth and development of the nation. This paper attempts to examine the performance of the non- banking financial sector in the financial years of 2017-2018 and 2018-2019 in terms of expansion and profitability and also analyse the contribution of these companies to other sectors through credit deployment. This would help one understand the contribution of non- banking financial sector to the Indian economy as whole. This paper also attempts to understand the impacts of COVID-19 pandemic on the said sector and understand the predict the situation of NBFCs in the near future. The paper highlights the above by using secondary data extracted from Reserve bank of India publications as well as by various other government and private papers. This paper also looks as the direct and indirect effects of various government schemes on the performance of NBFCs.