Finance Minister Nirmala Sitharaman highlighted India’s remarkable economic turnaround, particularly in the banking sector, since 2014, suggesting it as a case study worthy of the Harvard Business School. Speaking at the Gujarat Chambers of Commerce and Industry (GCCI) in Ahmedabad on the theme “Vikshit Bharat 2047,” Sitharaman praised the transformation in India’s banking landscape and the governmental reforms undertaken post-2014.
Sitharaman outlined the challenges faced by Indian banks, notably the twin balance sheet problem in 2014, which burdened them with non-performing assets (NPAs) and hampered lending to businesses. Drawing parallels with the collapse of the Silicon Valley bank in the US, she commended Indian banks’ resilience during the pandemic and their adept management of mergers for stability.
Despite hurdles like merger-related issues and liquidity challenges, Sitharaman expressed confidence in India’s future, envisioning a prosperous “Vikshit Bharat” by 2047 through sustained collective efforts. She emphasized the pivotal role of stakeholders in achieving this vision, underlining the government’s commitment to driving growth and development.
The minister contrasted India’s economic resilience with challenges faced by Western nations in post-COVID bank management, reinforcing the significance of continued efforts to maintain bank health and stability in India’s growth trajectory.