Union Minister of Commerce and Industry Piyush Goyal commended public sector banks (PSBs) for their strength and competitiveness, aligning with private and foreign banks in driving India’s progress. Speaking at the MSME Banking Excellence Awards, Goyal emphasized the crucial role of the banking system in providing timely credit to micro, small, and medium enterprises (MSMEs, as per an official statement.
Goyal highlighted the substantial growth of MSME credit at a compound annual rate of about 14% in recent years, noting the sector’s significant benefits from recent free trade agreements with multiple countries. He urged stakeholders to collaborate effectively to capitalize on opportunities from these agreements and work towards boosting bilateral trade in goods and services.
The Minister referenced various initiatives aimed at facilitating credit access, including the Mudra loan scheme and pandemic credit guarantee measures that eliminated collateral requirements. Notably, nearly 70% of Mudra loans were disbursed to women entrepreneurs. Goyal also mentioned the PM SVANidhi scheme, which initially offered small loans of Rs 10,000 and later increased them based on repayment performance, aiding street vendors in avoiding exploitative moneylenders.
Goyal linked National Mathematics Day, commemorating Srinivasa Ramanujan’s birth anniversary, to the essential role of bankers in managing numbers that translate into economic opportunities for MSMEs. He highlighted India’s global economic potential, aiming to reach $30–35 trillion by 2047, with banks registering profits of approximately Rs 3 lakh crore last year, showcasing their ability to lend to trustworthy borrowers.
Encouraging banks to lend liberally and responsibly, Goyal emphasized the need to expedite and enhance transparency in loan approvals, while also providing capital and guidance to MSMEs to help them leverage government schemes.
