Finance Minister Nirmala Sitharaman emphasised the need for lower borrowing costs to boost industrial growth and capacity expansion, addressing inflation concerns and the broader economic outlook. Speaking at the 11th SBI Banking and Economics Conclave, she outlined key challenges and government initiatives focused on economic stabilisation and supporting businesses, especially small and medium enterprises (SMEs).

Here are some of the key takeaways from Nirmala Sitharaman’s Speech: 

• Reducing Borrowing Costs: Sitharaman highlighted that high borrowing costs are placing significant strain on businesses, urging banks to lower interest rates to make loans more accessible. She stressed the importance of affordable financing to drive industrial expansion and capacity building.
• Inflation Control: Acknowledging the impact of rising prices for vegetables like tomatoes, onions, and potatoes on inflation, the finance minister assured that measures such as improved storage facilities and the palm oil mission are being implemented to stabilise supplies and curb price volatility.
• Economic Stability: Despite signs of moderation in certain economic indicators, Sitharaman emphasised India’s economic resilience, attributing it to strong macroeconomic fundamentals, controlled inflation, and fiscal discipline. She advised against excessive worry about a potential slowdown.
• Ethical Banking Practices: Sitharaman urged banks to adopt transparent, ethical, and customer-focused practices, especially regarding insurance products. She raised concerns about mis-selling and called for clear communication and improved services to enhance customer trust.
• MSME Support: The finance minister announced ambitious lending targets for the MSME sector, aiming for Rs 6.12 trillion in FY26 and Rs 7 trillion in FY27, while urging banks to extend an additional Rs 1.54 trillion in FY25 to bolster small businesses.
• Addressing Global Market Pressures: Sitharaman acknowledged the impact of global market volatility, particularly on the import of pulses and edible oils, affecting domestic prices. She assured that the government is taking steps to mitigate these challenges and safeguard consumers against rising costs.

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