Union Minister of Commerce and Industry Piyush Goyal on Tuesday said it was encouraging to see public sector banks competing on an equal footing with private and foreign banks, underscoring their growing strength and competitiveness in supporting India’s economic growth.
Addressing the MSME Banking Excellence Awards in New Delhi, the Minister said public sector banks have emerged as robust institutions, standing shoulder to shoulder with private and foreign lenders in financing businesses and driving development.
Highlighting the pivotal role of banks in nurturing the micro, small and medium enterprises (MSME) sector, Shri Goyal said access to timely and adequate credit has been central to empowering small entrepreneurs. He noted that institutional finance has helped MSMEs move away from informal credit sources, enabling them to establish enterprises, expand operations and improve livelihoods.
FTAs Driving Investment and Opportunity
Referring to the announcement of the India–New Zealand Free Trade Agreement earlier in the day, Shri Goyal said it marked the seventh FTA concluded under the leadership of Narendra Modi. He observed that India’s recent FTAs have increasingly been signed with developed economies, reflecting a strategic shift towards partnerships that offer complementary strengths and strong business potential.
The Minister said India’s FTAs today go beyond market access for goods and services, encompassing technical collaboration to support innovators, farmers and entrepreneurs, thereby enhancing productivity and incomes. On the India–New Zealand agreement, he noted that New Zealand has made a binding commitment to invest USD 20 billion in India over the next 15 years—significantly higher than the USD 70 million invested over the past 25 years. Importantly, he said the agreement includes provisions to claw back concessions if investment commitments are not met, making it a serious and enforceable pact.
Shri Goyal said the FTA is expected to attract substantial investments into innovation, manufacturing and exports, positioning India as a manufacturing base not only for New Zealand but also for global markets. He added that MSMEs are expected to be the biggest beneficiaries of these developments.
Women-Led Negotiations and National Mathematics Day
Calling for collective efforts to quickly realise the benefits of the FTA, the Minister urged stakeholders to work towards doubling, tripling and even quadrupling bilateral trade in goods and services. He also highlighted that the India–New Zealand FTA was negotiated by a team comprising almost entirely women officers, making it the first such agreement finalised by women negotiators. He noted that India’s Ambassador to New Zealand is also a woman, reflecting women’s leadership in India’s growth journey.
Shri Goyal also noted that the day coincided with National Mathematics Day, commemorating the birth anniversary of Srinivasa Ramanujan, and linked it to the role bankers play in managing numbers that translate into economic opportunities for MSMEs.
Credit Access and MSME Empowerment
Congratulating the award winners, the Minister expressed confidence that MSMEs, startups, incubators and young entrepreneurs would continue to receive strong backing from the banking system, supported by government initiatives.
Recalling measures to ease credit access, he referred to the launch of the Mudra loan scheme in the first year of the Modi government and the credit guarantee schemes introduced during the COVID-19 pandemic, under which the government acted as guarantor for MSME loans without additional collateral. He pointed out that nearly 70 per cent of Mudra loans have been extended to women entrepreneurs.
He also highlighted the PM SVANidhi scheme, under which small loans—initially Rs 10,000 and later enhanced to Rs 20,000 and Rs 50,000 based on repayment performance—have helped street vendors escape exploitative moneylenders and improve their livelihoods.
Banks and MSMEs: Partners in Growth
Appreciating banks for supporting small borrowers, Shri Goyal said such initiatives reflect the Prime Minister’s vision of MSME as “Maximum Support to Micro, Small and Medium Enterprises.” He noted that India is globally viewed as a trusted partner offering democracy, rule of law, national treatment to investors and decisive leadership.
The Minister said global expectations see India growing from a USD 4 trillion economy to USD 30–35 trillion by 2047, presenting an eight-fold growth opportunity. He pointed out that banks posted profits of around Rs 3 lakh crore last year, demonstrating their capacity to lend to honest borrowers. MSME credit, he added, has grown at a CAGR of about 14 per cent in recent years.
Calling on banks to lend liberally yet responsibly, Shri Goyal urged faster and transparent loan approvals, adequate capital availability for capex, opex and working capital, and proactive guidance to MSMEs to help them leverage government schemes and capital markets.
Observing that many large corporates began their journey as MSMEs, the Minister said the strength of the MSME sector would ultimately define India’s future growth. Describing banks and MSMEs as inseparable partners, he said their combined progress would power India towards Viksit Bharat 2047.
Congratulating the award winners once again, Shri Goyal extended his best wishes to bankers and financial sector representatives for 2026, calling for faster, inclusive and sustainable growth during the Amrit Kaal.