India’s Finance Minister Nirmala Sitharaman emphasized the urgent need for large, world-class banks to support the country’s economic growth and global competitiveness. Speaking on November 6, 2025, she highlighted the role of strong banking institutions in driving financial inclusion and economic resilience.
Finance Minister Nirmala Sitharaman emphasizes India’s need for large, world-class banks to drive economic growth and global competitiveness.
New Delhi, November 6, 2025 – India requires the establishment of large, world-class banks to boost its economic growth and global standing, according to Finance Minister Nirmala Sitharaman. Speaking at a financial industry event on Thursday, Sitharaman underscored the urgent need for expanding the size and capacity of Indian banks to effectively compete on the international stage and better serve the nation’s diverse economy.
In her address, the Finance Minister stressed that having big, globally competitive banks is crucial for accelerating financial inclusion, enhancing credit availability, and supporting varied sectors including infrastructure, manufacturing, and small and medium enterprises (SMEs). “To realize the vision of a $5 trillion economy, India needs strong banking institutions that can match international standards in scale, governance, and technological innovation,” Sitharaman said.
India’s banking sector has undergone significant reforms in recent years, including bank mergers aimed at creating larger and more resilient entities. However, Sitharaman noted that there is still considerable scope for growth and consolidation to improve competitiveness.
“Our objective is not only to enhance domestic banking infrastructure but also to position Indian banks as major players globally,” she added. “This will help attract international investments and facilitate easier trade and finance operations for Indian businesses abroad.”
The Finance Minister also highlighted the importance of leveraging technology and digital banking to reach underserved populations, thereby promoting inclusive growth. She advocated for continued reforms to strengthen regulatory frameworks and governance structures within banks.
Industry experts have welcomed Sitharaman’s remarks, noting that globally competitive banks could play a pivotal role in mobilizing resources for large infrastructure projects and innovation-driven sectors, which are essential for India’s long-term growth ambitions.
In conclusion, Nirmala Sitharaman’s call for the creation of big, world-class banks reflects the government’s focus on building a robust financial system that supports economic development and international integration. Strengthening India’s banks remains a critical component of the country’s broader economic strategy.
