Addressing the gathering of the Gujarat Chambers of Commerce and Industry (GCCI) in Ahmedabad on Saturday, Finance Minister Nirmala Sitharaman said that the restoration of the Indian economy, especially banks, since 2014, is part of a case study at Harvard Business School.
The finance minister was giving the speech on the theme “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 addressing the event, the finance minister also talked about the Dual balance sheet problem prevailing in 2014. When the balance sheet of the bank was pressured with NPA’s (non-performing assets). Leading to lending issues for companies.
companies, followed by the struggles of the companies in repayment of the loans.
Later she drew the parallels with Silicon Valley bank’s failure, drew the emphasis on the Indian government’s role in protecting the infrastructure of the banks before & after the pandemic. She lauded the Indian banking sector for effective management of mergers, ensuring stability amidst challenging circumstances.
“Post pandemic banks, like Silicon Valley banks which was widely trusted by startups, collapsed and nobody knew about it” she said.
Talking about India’s journey, the finance minister acknowledged the difficulties faced by the government in restoring the economy, like issues of merger, liquidity issue in 2019 and fragility of the economy.
“So even post COVID managing banks, keeping them healthy, ensuring that they don’t collapse are still a raw game for the West whereas we have managed them although we started with a fragile situation” she said during the GCCI’s gathering.
Later she expressed hope for India’s future. Saying that with the help of collective efforts, India will achieve the vision of Viksit Bharat by 2047. She further stressed on the sustained efforts saying “Another good solid 25 years of Sabka prayaas, we will be able to reach Viksit Bharat.”