In order to promote industrial growth and increase capacity, Finance Minister Nirmala Sitharaman underlined the significance of lowering borrowing costs. Speaking at the 11th SBI Banking and Economics Conclave, she listed government programs targeted at stabilising the economy and addressed urgent economic issues like inflation. Measures to assist businesses, especially small and medium-sized firms (SMEs), were given special attention.
1. Easing Borrowing Costs : Nirmala Sitharaman, the finance minister, emphasised that businesses are suffering greatly as a result of high borrowing costs. She emphasised the need for inexpensive financing to assist industrial growth
2. Addressing Inflation : Sitharaman recognised that growing costs for staple foods such as potatoes, tomatoes, and onions have an effect on inflation. She outlined current government initiatives to stabilise supplies and reduce price swings, including enhancing storage facilities and furthering the palm oil mission.
3. Strengthening Economic Resilience : Despite some moderation in economic indicators, the Finance Minister reassured stakeholders of the economy’s resilience. She credited this strength to robust macroeconomic fundamentals, declining inflation trends, and fiscal discipline, urging calm and confidence amid concerns over potential slowdowns.
4. Encouraging Ethical Banking : The Finance Minister urged banks to implement open, customer-focused procedures, especially when it comes to selling insurance. She expressed worries about the frequency of misselling and emphasised the value of improved service quality and transparent communication in building consumer trust.
5. Boosting MSME Lending : Sitharaman unveiled ambitious lending targets for the MSME sector, with Rs 6.12 trillion set for FY26 and Rs 7 trillion for FY27. She also urged banks to extend an additional Rs 1.54 trillion in credit during FY25 to provide robust support for small businesses and entrepreneurs.
6. Navigating Global Market Pressures : The Finance Minister acknowledged the difficulties caused by fluctuations in international markets, particularly with regard to the import of edible oils and pulses, and underlined that the government is making every effort to lessen their influence on domestic prices. The goal of these initiatives is to protect customers from the impact of growing expenses.
In conclusion, Finance Minister Nirmala Sitharaman’s address highlighted a multi-faceted approach to fostering economic growth and resilience. From advocating affordable borrowing to addressing inflationary pressures and global market challenges, her speech underscored the government's commitment to stabilizing the economy while promoting ethical banking and robust MSME support. As India navigates a dynamic economic landscape, these measures aim to strengthen industrial growth, safeguard consumer interests, and ensure long-term fiscal stability.
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