Union Finance Minister Nirmala Sitharaman's address at the Gujarat Chambers of Commerce and Industry highlighted the remarkable strides taken by the Indian economy, focusing on the revival of banks since 2014. She drew attention to the Indian government's proactive role in safeguarding the infrastructure of Indian banks, especially in comparison to the unexpected collapse of Silicon Valley Bank following the pandemic, which had ramifications for startups that trusted the bank.
Sitharaman praised the Indian banking sector for its adept management of mergers and ensuring stability during difficult times, pointing out the transition and reforms implemented in the banking industry since 2014. The minister reflected on the challenges encountered, such as the twin balance sheet problem in 2014 when NPAs burdened banks, hindering their ability to lend to companies struggling to repay loans. She also identified hurdles like merger-related issues, liquidity problems in 2019, the COVID-19 impact, and the overall fragility of the economy that needed restoration efforts.