India grew rapidly since 2014 to become fifth largest economy: FM

Finance Minister Nirmala Sitharaman states that India has grown rapidly since 2014 to become the fifth-largest economy by 2021 – 22. “Hopefully in the next few years, we will be at the third position,” Sitharaman said at the 11th SBI conclave in Mumbai yesterday.

Sitharaman said that banks and the corporate sector have recovered from the twin balance sheet problem in a very “systematic” way on the back of the government policies.

“Companies were able to come out, and the economy started feeling the relief of the stress being taken out of the banks. Therefore, the profitability of the scheduled commercial banks is at a decadal high, with the returns on assets at 1.3% and return on equity at 13.8%. Gross NPAs have declined to a 12-year low of 2.8%. In some banks, it is even better, and others are also catching up,” the finance minister said.

“Comprehensive reforms are taking place from the government side and also from the RBI,” she added.