AJMEDABAD: The restoration of the Indian economy, especially banks, since 2014 is actually a lesson for the Harvard Business School, said Union Finance Minister Nirmala Sitharaman, while addressing the gathering at the Gujarat Chambers of Commerce and Industry (GCCI), in Ahmedabad on Saturday. The Finance Minister was speaking on the topic ‘Viksit Bharat 2047’.
“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 Nirmala Sitharaman while speaking at the event. She underscored the transition of India’s banking sector and the reforms initiated by the government since 2014.
Sitharaman pointed out the twin balance sheet problem prevailing in 2014, where banks’ balance sheets were burdened with non-performing assets (NPAs), hindering lending to companies, while companies themselves struggled to repay loans.
Drawing a comparison, Sitharaman highlighted the failure of the Silicon Valley bank in the United States and emphasized the Indian government’s role in safeguarding the infrastructure of Indian banks during and after the pandemic. She praised the Indian banking sector for effectively managing mergers and ensuring stability amid challenging circumstances.
“Post pandemic banks, like Silicon Valley bank which was widely trusted by startups, collapsed and nobody knew about it”, she said. Reflecting on India’s journey, Sitharaman acknowledged the difficulties faced by the government in restoring the economy, including merger-related issues, liquidity problems in 2019, the impact of Covid-19 in 2020, and the fragile economy in need of restoration.
“So even post Covid, managing banks, keeping them healthy, ensuring that they don’t collapse are still a raw game for West whereas we have managed them although we started with a fragile situation”.
Sitharaman expressed optimism about India’s future, stating that with continued collective effort, India can achieve the vision of Viksit Bharat by 2047. She emphasized the importance of sustained efforts by all stakeholders, stating, “Another good solid 25 years of Sabka prayaas, we will be able to reach Viksit Bharat”.
The minister also shed light on the resilience and progress of the Indian economy, showcasing the government’s commitment to driving growth and development. (ANI)