The restoration of the Indian economy, especially banks since 2014, is a lesson for the Harvard Business School, Union Finance Minister Nirmala Sitharaman remarked in her address to a gathering at the Gujarat Chambers of Commerce and Industry (GCCI) in Ahmedabad on April 20. She was speaking on ‘Vikshit 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 Sitharaman, as reported by ANI.
Citing the example of the Silicon Valley Bank’s failure in the United States, Sitharaman emphasised the Indian government’s role in safeguarding the infrastructure of Indian banks during and after the pandemic.
“Post pandemic banks, like Silicon Valley bank which was widely trusted by startups, collapsed and nobody knew about it,” she said.
The minister also praised the Indian banking sector for effectively managing mergers and ensuring stability amid challenging circumstances.
The Union minister 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 NPAs, hindering lending to companies that then struggled to repay loans.
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, and the fragile economy in need of restoration.
The finance minister also expressed optimism about India’s future and said that with continued collective effort India can achieve the vision of Viksit Bharat by 2047.
“Another good solid 25 years of Sabka prayaas, we will be able to reach Vikshit Bharat,” she added.
The minister also shed light on the resilience and progress of the Indian economy, showcasing the government’s commitment to driving growth.
