Keywords : Banking sector, economic growth, $5 trillion economy, non-performing assets, financial inclusion, digital banking, credit flow, infrastructure financing, India

Abstract : The banking industry plays a key role in the economic prosperity of every nation, and India is no different. With the Indian government projecting a $5 trillion GDP by 2025, it is vital to evaluate the role of the banking Industry in accomplishing this ambitious objective. India`s banking industry, which includes a mix of public, private, and foreign banks, is rapidly evolving as of which advances in digital banking, financial inclusion initiatives, and a shift toward infrastructure financing. However, challenges such as NPAs, capital adequacy, and governance issues persist. This research explores the contributions of the Indian finacial service sector towards economic growth, with an emphasis on credit facilitation, infrastructure financing, and financial inclusion. This paper investigates the current health of India`s banking industry, the link between banking performance and economic growth and development, and the actions required to restructure the sector to achieve it`s objective of a $5 trillion economy.

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