{"id":3554,"date":"2024-11-19T10:23:31","date_gmt":"2024-11-19T04:53:31","guid":{"rendered":"https:\/\/kreditbazar.com\/blog\/?post_type=news&p=3554"},"modified":"2024-11-19T10:23:35","modified_gmt":"2024-11-19T04:53:35","slug":"affordable-bank-interest-rates-key-to-driving-industrial-growth-fm-nirmala-sitharaman","status":"publish","type":"news","link":"https:\/\/kreditbazar.com\/blog\/news\/affordable-bank-interest-rates-key-to-driving-industrial-growth-fm-nirmala-sitharaman\/","title":{"rendered":"Affordable Bank Interest Rates Key to Driving Industrial Growth: FM Nirmala Sitharaman"},"content":{"rendered":"
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Finance Minister Nirmala Sitharaman<\/strong> has stressed the need for affordable bank interest rates<\/strong> to help industries grow and expand. At the 11th SBI Banking & Economics Conclave<\/strong>, she highlighted that high borrowing costs concern industries aiming to build capacities and meet India\u2019s growth needs.<\/p>\n\n\n\n

Why Affordable Interest Rates Matter<\/strong><\/h2>\n\n\n\n
    \n
  • High borrowing costs are stressful for industries<\/strong>.<\/li>\n\n\n\n
  • Lower interest rates are necessary to ramp up production and build capacities<\/strong>.<\/li>\n\n\n\n
  • Sitharaman noted, \u201cBank interest rates must become more affordable.\u201d<\/li>\n<\/ul>\n\n\n\n

    Current Economic Scenario<\/strong><\/h2>\n\n\n\n
      \n
    • The RBI’s Monetary Policy Committee (MPC)<\/strong> has kept the repo rate at 6.5%<\/strong> for nearly two years.<\/li>\n\n\n\n
    • Inflation remains a challenge, with the Consumer Price Index (CPI)<\/strong> rising to 6.21% in October<\/strong>, mainly due to spikes in food prices.<\/li>\n<\/ul>\n\n\n\n

      Government’s Focus on Inflation Control<\/strong><\/h2>\n\n\n\n
        \n
      • Key drivers of inflation<\/strong>: Prices of onions, tomatoes, and potatoes.<\/li>\n\n\n\n
      • The government is working on better storage and supply chain management<\/strong> to reduce cyclical price hikes.<\/li>\n\n\n\n
      • Sitharaman assured that other core inflation items are in the 3-4% manageable range<\/strong>.<\/li>\n<\/ul>\n\n\n\n

        India\u2019s Economic Strengths<\/strong><\/h2>\n\n\n\n

        The Finance Minister highlighted several positive indicators showcasing the resilience of India\u2019s economy:<\/p>\n\n\n\n

          \n
        • Record e-way bill generation<\/strong>, indicating robust trade activity.<\/li>\n\n\n\n
        • Strong rural demand<\/strong> and high PMI data<\/strong> for manufacturing and services.<\/li>\n\n\n\n
        • Healthy FDI inflows<\/strong> in FY25, boosting global confidence in India\u2019s potential.<\/li>\n\n\n\n
        • Foreign exchange reserves cover 11.8 months of imports<\/strong> and exceed 100% of external debts<\/strong>, ensuring financial stability.<\/li>\n<\/ul>\n\n\n\n

          Support for MSMEs<\/strong><\/h3>\n\n\n\n
            \n
          • Sitharaman emphasised the need to support MSMEs with adequate credit<\/strong>.<\/li>\n\n\n\n
          • Lending targets for MSMEs<\/strong>:\n
              \n
            • \u20b91.54 lakh crore additional lending this year.<\/li>\n\n\n\n
            • \u20b96.12 lakh crore by FY26.<\/li>\n\n\n\n
            • \u20b97 lakh crore by FY27.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
            • She urged banks to be more sensitive to MSME credit requirements<\/strong>.<\/li>\n<\/ul>\n\n\n\n

              Concerns Over Mis-Selling of Products<\/strong><\/h3>\n\n\n\n
                \n
              • Banks have been mis-selling insurance products<\/strong>, increasing customers’ costs indirectly.<\/li>\n\n\n\n
              • Sitharaman urged banks to focus on core banking services<\/strong> and avoid pushing unnecessary products.<\/li>\n<\/ul>\n\n\n\n

                A Promising Outlook for India<\/strong><\/h3>\n\n\n\n
                  \n
                • Sitharaman reaffirmed the government\u2019s commitment to ensuring India\u2019s economic growth.<\/li>\n\n\n\n
                • She stated, \u201cIndia is firmly on track to become the third-largest economy in the world<\/strong>.\u201d<\/li>\n\n\n\n
                • The government closely monitors the situation and takes necessary measures to strengthen the economy.<\/li>\n<\/ul>\n\n\n\n

                  Kreditbazar: Supporting Your Financial Needs<\/strong><\/h2>\n\n\n\n

                  If you\u2019re looking for affordable financial solutions, Kreditbazar<\/strong> offers easy and flexible personal loan options<\/strong> to meet your needs. Empower your financial journey with competitive interest rates and simplified processes designed for you.<\/p>\n\n\n\n

                  Sources:<\/strong>
                  <\/strong>This news is based on insights from the 11th SBI Banking & Economics Conclave<\/strong> and other relevant economic updates.<\/p>\n","protected":false},"excerpt":{"rendered":"

                  Finance Minister Nirmala Sitharaman has stressed the need for affordable bank interest rates to help industries grow and expand. At the 11th SBI Banking & Economics Conclave, she highlighted that high borrowing costs concern industries aiming to build capacities and meet India\u2019s growth needs. Why Affordable Interest Rates Matter Current Economic Scenario Government’s Focus on<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","tags":[],"news-category":[],"class_list":["post-3554","news","type-news","status-publish","hentry"],"a3_pvc":{"activated":true,"total_views":18,"today_views":1},"_links":{"self":[{"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/news\/3554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/types\/news"}],"author":[{"embeddable":true,"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/comments?post=3554"}],"version-history":[{"count":1,"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/news\/3554\/revisions"}],"predecessor-version":[{"id":3555,"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/news\/3554\/revisions\/3555"}],"wp:attachment":[{"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/media?parent=3554"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/tags?post=3554"},{"taxonomy":"news-category","embeddable":true,"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/news-category?post=3554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}