Nurturing Financial Leadership: India’s Imperative in the Pursuit of Economic Excellence
In the spirited landscape of India’s economic growth, the demand for financial professionals has emerged as a key force in accelerating our nation toward self-reliance and economic advantage. India’s journey from an agrarian economy to a global economic powerhouse has been nothing short of remarkable. The country’s economic reforms, technological advancements, and demographic dividend have fueled this upward trajectory. Today, our country stands at the crossroads of a transformative era and has set its sights on achieving an ambitious goal of a 5 trillion-dollar economy. In a dynamic period like this, the role of financial experts becomes increasingly critical. Even the National Education Policy (2020) has emphasized financial literacy right from the school level. Finance is the lifeline of a thriving economy and there is a surge in demand of building a robust financial infrastructure that can be only made possible by concerted efforts to bridge the existing gap and foster a new generation of financial leaders.
National Education Policy and Financial Literacy:
The recent overhaul of India’s education policy has brought forth a vision that extends beyond traditional academic paradigms. Recognizing the importance of financial literacy, the 2020 policy advocates for integrating financial education into the school curriculum. By instilling financial acumen at an early age, we aim to empower our youth with the skills needed to navigate the complexities of a modern economy. Financial literacy programs are going to encompass adult education, as well. The NEP recognizes that lifelong learning is integral to adaptability in a rapidly transforming economic landscape. India seeks to equip its workforce with the necessary tools to contribute meaningfully to the economy.
Current Landscape of Financial Professionals in India:
Despite the progressive strides, a critical examination of the current scenario reveals a demand-supply gap in the availability of financial professionals, particularly chartered accountants (CAs) and finance experts. India currently boasts a considerable number of financial professionals, yet the accelerating pace of economic growth has led to an escalating demand for their expertise.
According to recent data, India has approximately 3.93 lakh professionals registered as chartered accountants (CAs), and 2, 517 Certified Financial Planners. However, with the demand for financial expertise soaring, this existing cadre of professionals may soon find themselves stretched thin. The demand-supply gap is a reality that needs urgent attention to sustain India’s momentum toward economic self-reliance.
Closing the Demand-Supply Gap:
To ensure the sustained growth of the Indian economy, it is imperative to address the existing demand-supply gap in the financial sector. This necessitates a multi-pronged approach involving educational institutions, regulatory bodies, and industry stakeholders.
- Enhanced Educational Infrastructure:
The Government’s new education policy is aimed at doubling public sector spending in the education sector from 3% to 6%. This presents a significant opportunity for academic institutions to enhance existing infrastructure and develop digital learning infrastructure as well. Simultaneously, the growing awareness of basic financial knowledge has led to an increased demand for financial planning. Educational institutions must revamp their finance and accounting programs to align with the evolving needs of the industry. Collaboration between academia and industry leaders can provide insights into the skills required by the workforce.
- Streamlined Certification Processes:
The process of becoming a certified financial professional, especially a CA, should be streamlined to encourage more individuals to pursue these careers. By minimizing barriers and strengthening support mechanisms, a larger pool of talented students can be encouraged to pursue such professional paths.
The Institute of Chartered Accountants of India (ICAI) has introduced a ’New Scheme of Education and Training’ aimed at reducing the duration of the CA course from 55-60 months to just 42 months. This comprehensive reform is designed to make the CA course more relevant to the needs of the modern workplace. It also integrates globally recognized best practices from international accounting bodies, aiming to ease the academic burden on students while preparing them for international markets.
- Promoting Continuing Education:
Emphasizing the importance of continuous learning is vital. Encouraging financial professionals to pursue additional certifications and stay updated on industry trends will contribute to a more dynamic and competent workforce. Even in the realm of financial education, institutions like ICAI are actively broadening the scope of subjects covered, ranging from courses on digital economy to the recently introduced Finance Act, 2023 as well as the integration of AI & ML into financial training. The Financial Planning Standards Board (FPSB) curates’ journals and conducts regular webinars for Certified Financial Planners. Following the initial certification, professionals are mandated to earn 15 Continuing Professional Development (CPD) points which is a requisite for the annual certification renewal process.
- Industry-Academia Collaboration:
Collaborative efforts between educational institutions and industry players can bridge the gap between theory and practice. Internship programs, guest lectures, and industry-sponsored projects can provide students with real-world exposure. FPSB has partnered with 16 education providers to enhance student training standards and improve job placement opportunities. Furthermore, the CA Industrial Training, offered by ICAI, is tailored to equip CA students with hands-on practical training and experiential learning.
Conclusion:
As India forges ahead on its path to a 5 trillion-dollar economy, the demand for financial professionals emerges as a key factor in sustaining this growth. The National Education Policy’s focus on financial literacy is a commendable step, but concerted efforts are needed to bridge the demand-supply gap in the financial sector.
Fostering the next generation of financial leaders requires a collaborative effort from educational institutions, regulatory bodies, and industry stakeholders. By investing in educational infrastructure, streamlining certification processes, promoting continuing education, and fostering industry-academia collaboration, India can ensure a steady supply of competent financial professionals.
As we navigate the complexities of a rapidly evolving economic landscape, nurturing financial leadership becomes not only a strategic imperative but also a testament to India’s commitment to self-reliance and progressive economic excellence.
(The author is Mr. Arjun Vadaraj, Founder and CEO, of ArivuPro Academy, and the views expressed in this article are his own)
