FM Nirmala Sitharaman Calls for Affordable Bank Interest Rates to Boost Investments

Finance Minister Nirmala Sitharaman has called for more affordable bank interest rates to stimulate investment and address borrowing challenges. Speaking at the SBI Conclave, she highlighted how high borrowing costs are causing stress for individuals and businesses, potentially hindering India’s growth ambitions. Sitharaman emphasized the need for competitive lending rates to encourage industries to expand their capacities and invest in new facilities. She also addressed inflation concerns, noting that periodic spikes in the prices of perishables like tomatoes, onions, and potatoes were driving up inflation figures. The finance minister flagged the issue of mis-selling insurance policies by banks, urging them to prioritize their core functions of raising deposits and lending. Despite concerns over slowing demand, Sitharaman reassured that India’s economy remains robust, citing strong macroeconomic fundamentals, moderating inflation, fiscal consolidation, and a robust external position. Her call for affordable lending rates aims to balance inflation control with growth-oriented policies.