Indian Economy: Union Finance Minister Nirmala Sitharaman said, “The revival of the Indian economy, particularly banks, since 2014, is a lesson for the Harvard Business School,” during her speech on April 20 at the Gujarat Chambers of Commerce and Industry (GCCI) in Ahmedabad. Her topic of discussion was “Vikshit Bharat 2047.”
Indian Economic Revival
“In terms of weighing which India has restored its economy between 2014 and now more particularly banks it’s actually a lesson for Harvard Business School,” said Sitharaman, as reported by ANI. Sitharaman emphasized the responsibility of the Indian government in protecting the infrastructure of Indian banks during and after the pandemic, using the example of the Silicon Valley Bank‘s failure in the United States.
Post-Pandemic Banking Crisis
“Post pandemic banks, like Silicon Valley bank which was widely trusted by startups, collapsed and nobody knew about it,” she said. The minister also gave the Indian banking industry credit for its ability to handle mergers well and maintain stability in the face of difficult conditions.
The Union minister emphasized the government’s 2014-initiated reforms as well as the transformation of India’s banking industry. Sitharaman drew attention to the dual balance sheet issue that existed in 2014, wherein non-performing assets (NPAs) weighed down bank balance sheets prevented lending to businesses that subsequently faced difficulties repaying loans.
Reflecting on India’s Economic Journey
Sitharaman reflected on India’s path and acknowledged the challenges the government had in reviving the economy, including issues arising from mergers, liquidity concerns in 2019, the effects of COVID-19, and the frail economy that required resuscitation. The finance minister also voiced hope for the future of India, stating that the country can realize the goal of Viksit Bharat by 2047 with sustained group effort.
Striving Towards Vikshit Bharat
“Another good solid 25 years of Sabka prayaas, we will be able to reach Vikshit Bharat,” she added. The minister also discussed the Indian economy’s tenacity and advancement, highlighting the government’s dedication to promoting prosperity.
