Foreign banks in India: Exploring their impact on employment and sustainable economic growth
DOI:
https://doi.org/10.53983/ijmds.v15n07.002Keywords:
Employment, Contribution, Competitiveness, DevelopmentAbstract
Foreign Banks are those banks that are headquartered in a different country but have operations in another country in order to provide a varied range of banking services including deposits, loans, foreign exchange and investment products to individuals and government of the host country. Foreign banks in India includes Standard Chartered Banks, CITI Bank, HSBC bank, DBS Bank etc. At present there are 44 foreign banks in India. This research paper explores the role of foreign banks in enhancing employment growth of India and special emphasis on how it contributes to skill development, job creation, and the overall expansion of the economy. It uses secondary data from different published sources including reports by the Reserve Bank of India (RBI), Banking sector review and annual reports of leading foreign banks operated in India to analyse the influence of employment generation in the host country through the establishment of foreign banks. These banks introduce advanced banking practices, financial products, and services, which enhance operational efficiency and competitiveness. These has not led to the creation of job opportunities in not just within the banking sector but also in related industries like education, services, and technology. It is not easy to work in an another as they have to follow the proper guidelines set by the RBI. Their presence forces Indian Banks to enhance service quality, adopt new technology and invest in employee development. Foreign banks often introduce advanced strategy such as digital transaction platforms, blockchain, AI-based financial tools and mobile banking. Moreover, the specialised workforce will be required for maintaining cybersecurity, data analytics, software development that will also enhance employment opportunity. In order to enhance the economy of the nation, the set up of foreign banks is must as they invest in the training and development of their employees, which helps to improve the overall skill set of the workforce.
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