The non-banking financial sector (NBFC) refers to financial institutions that provide banking services like loans and credit facilities, but do not hold a banking license. In India, NBFCs play a crucial role in providing financial services to sectors underserved by traditional banks, such as small and medium enterprises (SMEs) and rural communities.

The non-banking financial sector (NBFC) refers to financial institutions that provide banking services like loans and credit facilities, but do not hold a banking license. In India, NBFCs play a crucial role in providing financial services to sectors underserved by traditional banks, such as small and medium enterprises (SMEs) and rural communities.

When it's mentioned that India's NBFC sector grew by 10% while globally it declined by 3%, it indicates the following:

1. **Growth in India (10%)**: This suggests that the overall size and activity of India's NBFC sector increased by 10% over a specific period. This growth can be attributed to several factors:

   - **Increasing demand for credit**: As India's economy expands, there is a growing need for financing beyond what traditional banks provide, which NBFCs cater to.

   - **Government policies**: Supportive regulatory frameworks or policies that encourage NBFC growth can contribute to this increase.

   - **Market opportunities**: NBFCs often serve niche markets or sectors that are rapidly expanding, such as consumer finance, housing finance, and microfinance.

2. **Decline globally (-3%)**: Conversely, the global NBFC sector experienced a decline of 3%. Possible reasons for this decline could include:

   - **Global economic conditions**: Economic slowdowns or recessions in major economies can reduce the demand for credit and financial services, impacting NBFCs negatively.

   - **Regulatory challenges**: Stricter regulations or compliance requirements in certain countries may have constrained the growth or operations of NBFCs.

   - **Market saturation**: In some regions, the NBFC sector may be mature or facing intense competition from banks or other financial institutions.

In summary, the growth of India's NBFC sector by 10% indicates a positive trend in its expansion, driven by increased demand and supportive policies. Meanwhile, the global decline of 3% suggests challenges faced by NBFCs in other parts of the world, likely due to economic and regulatory factors.