Several favourable factors, including strong macroeconomic fundamentals, a young demographic, and greater reliance on domestic demand, provide core strength to the Indian economy to withstand global spillovers and grow at a higher aspirational trajectory, finance minister Nirmala Sitharaman said on Thursday.
Amidst this uncertain global environment, India’s resilience stands out, she said at a Bank of Maharashtra Maharashtraevent in Pune.
Post-COVID, India rebounded strongly, recording an average annual growth of about 8% during 2021-22 to 2024-25, she said, adding that it stood out as the fastest-growing major economy in the world.
“This economic resilience has continued, with India’s GDP growing by 7.8% in the April-June quarter. India’s resilience is not accidental,” she said.
India’s resilience reflects proactive fiscal and monetary policies, bold structural reforms, massive infrastructure creation, both physical and digital, improved governance and enhanced competitiveness over the last decade.
Sovereign upgrades validate India’s resilience
She said global rating agency S&P upgraded India’s sovereign credit rating to ‘BBB’ (from BBB-) in August 2025 after 18 years and Morningstar DBRS’ upgraded India to ‘BBB’ from BBB (low) in May 2025. Recently, Japanese credit rating agency, Rating and Investment Information, Inc. (R&I) upgraded India’s long-term sovereign credit rating to ‘BBB+’ from ‘BBB’.
Banking Mandate: Focus on MSMEs and education
Speaking on the occasion, financial services secretary M Nagaraju said public sector banks should increase their focus on MSMEs. They should provide more loans to MSMEs, he said, adding that education loans should also be given priority.
He urged banks to see that no education loan application should be rejected. Nagaraju also said that banks should enhance their lending towards agriculture and allied activities. In the same breadth, he asked banks to be vigilant about the quality of loans.