Atlantic Council

The Atlantic Council is an influential international affairs think tank that plays a significant role in shaping global economic, financial and strategic discourse. Established in the United States in 1961, the organisation was founded to strengthen transatlantic relations during the Cold War. Over time, its scope has expanded beyond Europe and North America to include emerging economies, global finance, energy security and technological governance. In recent decades, the Atlantic Council has developed a sustained focus on banking, finance and the Indian economy, reflecting India’s growing importance in the global economic system.
The Council operates as a non-partisan, policy-oriented institution that brings together policymakers, academics, business leaders and financial experts. Through research programmes, task forces and high-level dialogues, it seeks to influence economic policy debates and provide strategic insights into global financial stability and development.

Background and Institutional Mandate

The Atlantic Council’s core mandate is to promote constructive leadership and engagement in international affairs. While its early work concentrated on security and diplomacy within the North Atlantic Treaty Organisation (NATO) framework, globalisation and financial integration prompted a broader focus on economic governance.
The Council established dedicated centres and programmes to address economic and financial issues, including:

• Global economic governance and monetary stability
• International banking regulation and financial resilience
• Capital markets and investment flows
• Emerging market economies and development finance

India has become a priority within this framework due to its status as one of the world’s fastest-growing major economies and a key player in global finance and trade.

Atlantic Council and Global Banking and Finance

The Atlantic Council engages extensively with global banking and financial systems, focusing on both advanced and emerging economies. Its work in this area aims to address systemic risks, regulatory challenges and the future of financial architecture.
Key themes in its banking and finance research include:

• Financial stability and crisis prevention
• Cross-border banking regulation and Basel norms
• Role of central banks and monetary policy coordination
• Digital finance, fintech and financial innovation

The Council frequently publishes policy briefs and convenes discussions involving central bankers, finance ministers and executives from global financial institutions. These platforms allow comparative analysis of banking systems, including lessons drawn from financial crises and regulatory reforms.

Focus on Emerging Economies and India

India occupies a distinctive position in the Atlantic Council’s economic research due to its scale, demographic profile and reform trajectory. As the world’s fifth-largest economy by nominal GDP, India’s banking and financial systems have significant implications for global markets.
The Council analyses India as:

• A major emerging market with increasing integration into global capital flows
• A hub for financial technology and digital public infrastructure
• A key actor in shaping global economic governance institutions

Its engagement with India reflects the broader shift of economic power towards the Indo-Pacific region.

Indian Banking Sector in Atlantic Council Discourse

The Atlantic Council examines the Indian banking sector within the context of financial stability, reform and inclusion. India’s banking system is characterised by a mix of public sector banks, private banks, regional rural banks and non-banking financial companies (NBFCs).
Areas of focus include:

• Public sector bank reforms and recapitalisation
• Asset quality issues and non-performing assets (NPAs)
• Corporate governance and regulatory oversight
• Role of the Reserve Bank of India (RBI) in prudential regulation

The Council’s analyses often situate Indian banking reforms within global regulatory trends, highlighting convergence with international standards while recognising domestic constraints such as political economy and developmental priorities.

Financial Markets and Capital Flows in India

India’s capital markets have expanded rapidly, attracting both portfolio and direct investment. The Atlantic Council studies these developments in relation to global financial integration and volatility.
Key aspects covered include:

• Foreign institutional investment and market sensitivity
• Exchange rate management and capital account policies
• Development of bond markets and long-term finance
• Interaction between domestic savings and global liquidity

These discussions are particularly relevant in the context of global monetary tightening, where emerging markets like India face challenges related to capital outflows and currency pressures.

Digital Finance and Financial Inclusion

One of the most prominent areas of Atlantic Council engagement with India is digital finance. India’s digital public infrastructure, including systems such as Aadhaar, Unified Payments Interface (UPI) and digital banking platforms, is frequently cited as a global model.
The Council highlights:

• Expansion of financial inclusion through digital payments
• Role of fintech in reducing transaction costs
• Cybersecurity and data governance challenges
• Regulatory innovation and public–private collaboration

India’s experience is often compared with other developing economies to assess the scalability and sustainability of digital financial models.

India in Global Economic Governance

The Atlantic Council places India within the broader context of global economic governance, examining its role in institutions such as the G20, International Monetary Fund (IMF) and World Bank.
Themes include:

• India’s advocacy for emerging market interests
• Reform of multilateral financial institutions
• South–South cooperation and development finance
• Alignment between economic diplomacy and domestic growth objectives

India’s increasing voice in global forums is analysed as both an opportunity and a challenge, requiring coherence between domestic banking reforms and international commitments.

Strategic Implications for the Indian Economy

From the Atlantic Council’s perspective, the strength of India’s banking and financial systems is closely linked to its strategic and geopolitical standing. A stable and efficient financial system supports sustained economic growth, infrastructure development and global influence.
The Council’s work underscores:

• The link between financial resilience and national security
• Importance of long-term finance for infrastructure and climate transition
• Role of private capital in supplementing public investment

These analyses contribute to policy debates on balancing growth, stability and inclusion in the Indian economy.

Criticism and Limitations

While the Atlantic Council is widely respected, its work is not without criticism. Some scholars argue that its policy recommendations may reflect Western-centric perspectives or prioritise market-led reforms.
In the Indian context, critiques include:

• Insufficient emphasis on informal finance and rural credit
• Overreliance on global best practices without full localisation
• Limited engagement with grassroots economic realities