In terms of share of the wealth created, IT sector was the biggest loser over the last five years, while oil & gas sector was the biggest gainer.
Mumbai: Financials have emerged as India's biggest wealth creators over a period of 2014-2019 for the third consecutive year, led by private banks and NBFCs (non-banking finance companies), but sustaining this leadership may be difficult for the sector.
These are the findings of the annual wealth creation study published by Motilal Oswal Securities. Raamdeo Agrawal, Joint Managing Director, has been publishing this study every year for the last 24 years.
"Sustaining its No. 1 position will be a challenge for the financial sector," the study added.
The report pointed out that in FY20, the financials sector witnessed a major crisis, triggered by the default of IL&FS, and several leading banks and NBFCs have seen a sharp rise in non-performing assets and provisions for the same.
"Overall, with Indian economy in a tailspin, the financials sector will find it challenging to lead wealth creation during the next study period -- FY15-20," the study said.
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In terms of share of the wealth created, IT sector was the biggest loser over the last five years, while oil & gas sector was the biggest gainer.
During this five-year period, the top five sectors accounted for 85 per cent of the total wealth created.
PSUs' (public sector undertakings) wealth creation performance on the other hand was weak in the same period.
"Privatisation is the only solution. It’s more than evident that the bureaucratic culture and lack of entrepreneurship in PSUs prevent them from effectively competing with their private sector counterparts," the study said.
