New Delhi: Public sector banks are now competing on equal terms with private and foreign lenders, reflecting the strength and resilience of India’s banking system, commerce and industry minister Piyush Goyal said while addressing the MSME Banking Excellence Awards in New Delhi on Monday.
The minister said public sector banks have emerged as strong and competitive institutions, playing a central role in supporting India’s growth by ensuring timely and adequate credit to micro, small and medium enterprises. He noted that expanded access to institutional finance has helped small entrepreneurs move away from informal lending, enabling them to start businesses, scale operations and improve livelihoods.
Highlighting developments on the trade front, the minister referred to the India–New Zealand Free Trade Agreement announced earlier in the day, calling it the seventh FTA concluded under Prime Minister Narendra Modi. He said India’s recent trade agreements reflect a clear shift towards partnerships with developed economies that offer complementary strengths and long-term business opportunities.
According to the minister, India’s FTAs now extend well beyond market access, covering goods, services and technical collaboration to support innovators, farmers and entrepreneurs. He pointed to the India–New Zealand agreement, under which New Zealand has made a binding commitment to invest USD 20 billion in India over the next 15 years, a sharp contrast to the USD 70 million invested over the past 25 years. He said the agreement includes provisions to claw back concessions if investment commitments are not honoured, making it enforceable rather than a non-binding arrangement.
He added that the agreement is expected to drive investments in innovation, manufacturing and exports, positioning India as a manufacturing base not only for New Zealand but also for other global markets, with MSMEs likely to be the biggest beneficiaries. He called on stakeholders to work together to quickly realise these opportunities and significantly scale up bilateral trade in goods and services.
The minister also highlighted the role of women in shaping India’s trade engagement, noting that the India–New Zealand FTA was negotiated by a team comprising almost entirely women officers and that India’s ambassador to New Zealand is also a woman.
Linking the occasion with National Mathematics Day, commemorating the birth anniversary of Srinivasa Ramanujan, he said bankers deal with numbers that ultimately translate into real economic opportunities for MSMEs.
Referring to government initiatives to ease credit access, the minister recalled the launch of the Mudra loan scheme in the first year of the Modi government and the credit guarantee measures introduced during the COVID-19 pandemic, where the government acted as guarantor for MSME loans without additional collateral. He noted that nearly 70 per cent of Mudra loans have gone to women entrepreneurs.
He also cited the PM SVANidhi scheme, under which street vendors received loans starting at Rs 10,000 and later enhanced to Rs 20,000 and Rs 50,000 based on repayment performance, helping them avoid exploitative moneylenders and stabilise incomes.
Appreciating the efforts of banks, the minister said such initiatives reflect the Prime Minister’s vision of “MSME” as “Maximum Support to Micro, Small and Medium Enterprises”. He said India is increasingly seen globally as a trusted partner offering democracy, rule of law, national treatment to investors and decisive leadership.
He noted that global expectations see India growing from a USD 4 trillion economy to USD 30–35 trillion by 2047, presenting an eight-fold growth opportunity. Banks, he said, are well placed to support this journey, having recorded profits of about Rs 3 lakh crore last year. He added that MSME credit has grown at a compound annual growth rate of around 14 per cent in recent years.
Calling on banks to lend liberally and responsibly, the minister urged faster and more transparent loan approvals, adequate capital for capex, opex and working capital, and proactive guidance to MSMEs so they can leverage government schemes and capital markets as they grow.
Observing that many large corporates began as MSMEs, he said the strength of the MSME sector would shape India’s future growth. He described MSMEs and banks as inseparable twins whose combined progress would drive the country towards Viksit Bharat 2047.
Congratulating the award winners, the minister extended his best wishes to bankers and financial sector professionals for 2026, calling for faster, inclusive and sustainable growth during the Amrit Kaal.
BI Bureau
