By – Mr. Shachindra Nath, Founder and Managing Director, UGRO Capital.

“The upcoming Union Budget presents a significant opportunity to strengthen India’s financial ecosystem and drive inclusive growth. We urge the government to expand the PSL(Priority Sector Lending) definition to include emerging sectors like renewable energy, women-led enterprises, and digital infrastructure, aligning with India’s evolving economic priorities. Establishing a dedicated regulatory framework for NBFC catering to PSL will further enable focused lending to underserved segments. Additionally, measures such as concessional refinancing from institutions like SIDBI and NABARD, along with credit guarantee schemes, can lower borrowing costs and mitigate risks, encouraging greater participation from banks and investors. Allowing bank loans to NBFC-PSLs to qualify as PSL will ensure consistent capital flow, empowering MSMEs and other critical sectors to scale operations and contribute to the nation’s growth. By implementing these measures, the budget can pave the way for a robust financial ecosystem, fostering innovation, entrepreneurship, and equitable development across India.”