India's resilience stands out amid global uncertainty: FM Sitharaman

Finance Minister Nirmala Sitharaman says India's resilience is built on strong fundamentals, reforms and governance, urging banks to maintain robust balance sheets and consumer trust

Union Finance Minister (FM) Nirmala Sitharaman on Thursday said that India’s economic resilience stands out even as uncertainty increasingly becomes a defining feature of the global landscape.

 

She also said the role of banks in this atmosphere has become much more critical — not just as custodians of savings, but also as engines of growth.

 

Speaking at the 91st foundation day celebrations of the Bank of Maharashtra in Pune, Sitharaman said: “Several favourable factors, such as strong macroeconomic fundamentals, a young demography and greater reliance on domestic demand provide the core strength to the Indian economy to withstand global spillovers and grow at a higher aspirational trajectory”.

 

 

Highlighting India’s gross domestic product (GDP) growth of 7.8 per cent in the first quarter of 2025-26 (Q1FY26), the FM said that India’s resilience was not accidental, but a reflection of proactive fiscal and monetary policies, structural reforms, infrastructure creation and improved governance.

 

“Today, as we stand in the last few months, we've seen global rating agencies reconsider their view on India,” Sitharaman said, in a reference to the rating upgrades by S&P Global, Morningstar DBRS and Rating and Investment Information (R&I), Japan.

 

She further talked about the crucial role of financial institutions in national infrastructure building, and said that banks must maintain strong balance sheets to fund significant investment needed to meet the demand for credit, innovative financial products, and capital expenditure.

 

Talking about the success of unified payments interface (UPI), the FM said it was important to remember that digitalisation alone is not enough. “Integrity, empathy and human judgment remain irreplaceable,” she said.

 

Sitharaman also urged banks to adhere to the core principle of consumer trust, and see every complaint as an opportunity to improve. “Grievance redressal must go hand in hand with root cause analysis, systemic corrections in products, processes, and conduct,” she said.

 

Speaking at the event, Department of Financial Services Secretary M Nagaraju said that public sector banks should increase their focus on micro, small & medium enterprises (MSMEs). He added that education loans should also be prioritised, and asked banks to see that no application for them should be rejected. Nagaraju also said banks should enhance lending towards agriculture and allied activities.

 

(With inputs from PTI)