To address India’s credit scarcity problem allow corporate houses to set up banks

Capital is a critical input in production. Bank credit, which accounts for more than 60% of domestically sourced financial flows to the commercial sector, remains the largest single source of this input in India.
But the quantum of bank credit remains woefully inadequate. In 2018, domestic credit to the private sector by banks as a proportion of GDP was just 50% in India. In comparison the proportion was 158% in China, 141% in South Korea, 112% in Thailand, 81% in Chile, 66% in South Africa and 61% in Brazil.