India's financial sector has been bolstered by reforms like the Insolvency and Bankruptcy Code, bank recapitalization, and constructive regulatory oversight. This strengthening has resulted in a significant improvement in bank profitability and a decrease in gross non-performing assets.
At the Kautilya Economic Conclave 2026 in New Delhi, Principal Secretary-2 to the Prime Minister, Shaktikanta Das, spoke about the restoration of the health of India’s financial sector as a defining feature of its resilience in recent years. He noted that reforms such as the Insolvency and Bankruptcy Code, bank recapitalization, and constructive regulatory oversight have supported the financial sector's emergence as a strong pillar of economic growth. Mr. Das emphasized that due to these efforts, the gross non-performing assets have fallen sharply to 1.68 percent in June this year, while bank profitability has significantly improved.
In addition, Mr. Das pointed out that the prudent management of the external sector has also contributed to India’s efforts towards macroeconomic stability. He mentioned that India’s external sector indicators have remained broadly resilient due to a mix of factors like the ongoing diversification of exports, conclusion of free trade agreements, and sustained surplus in services trade.
Secretary Saurabh Garg, from the Ministry of Statistics and Programme Implementation, also spoke at the event. He highlighted that strong corporate performance and sustained investment activity, particularly from the private sector, are key indicators of a positive economic trend. Mr. Garg noted that India had maintained its momentum after recording 7.8 percent growth in the first quarter of the financial year 2026-27.
Mr. Garg also mentioned that this momentum was reflected in recent upward revisions to India’s growth projections by international ratings agencies and research firms, including S&P Global Ratings and Fitch Ratings.
Source:
Akashvani News
