3 Economic Sectors PSU Banks Should Champion for Viksit Bharat (Focus on AP 2)

India is on an ambitious journey to become a Viksit Bharat, a developed, self-reliant nation where every citizen has equal access to opportunities, resources, and prosperity. But this transformation can’t happen without strong financial support at the grassroots level. 

That’s where Public Sector Banks (PSBs) step in, especially under the roadmap laid down by EASE 7.0, a reform agenda for enhancing customer experience, operational efficiency, and development impact.

Under EASE 7.0, Action Point 2 (AP 2) focuses on making PSU banks agents of economic growth, especially in sectors that can truly unlock India’s potential. So, which sectors should PSBs prioritize? 

Let’s explore the three key economic sectors that PSU banks should champion to drive inclusive, sustainable growth and help build a Viksit Bharat.

1. Agriculture and Allied Activities: Powering Rural Prosperity

Agriculture is the heartbeat of India, employing nearly 45% of the workforce. Supporting this sector is not just about food, it’s about jobs, income, and dignity for millions. For Viksit Bharat & EASE 7.0, agriculture must be a core focus.

How PSU Banks Can Help:

• Easy, Timely Credit: PSU banks can streamline loan processes for farmers, including Kisan Credit Cards (KCC) and agri-term loans. Currently, KCC coverage stands at 44% nationwide, and reaches 77% among farmers with holdings over 0.4 hectares or those who have taken agri-loans. Expanding this coverage is vital to ensure financial inclusion and timely access to working capital.

• Support for Allied Sectors: Fisheries, dairy, and poultry need equal attention. Small loans for cold storage, processing units, or veterinary services can make a big difference in boosting rural incomes and creating sustainable livelihoods.

• Climate-Smart Farming: Financing solar pumps, drip irrigation, or organic farming methods can future-proof agriculture and help farmers adapt to changing weather patterns while conserving resources.

Why it Matters:

By supporting rural credit with better access and monitoring, PSBs directly contribute to the goals of Viksit Bharat & EASE 7.0, ensuring financial inclusion, boosting rural income, and reducing migration to cities.

2. MSMEs: The Backbone of Job Creation

India’s Micro, Small, and Medium Enterprises (MSMEs) are the silent engines of our economy. They account for nearly 30% of India’s GDP and are responsible for over 110 million jobs. For a Viksit Bharat, MSMEs are key to innovation, employment, and local manufacturing.

How PSU Banks Can Help:

• Collateral-Free Loans: Thanks to schemes like CGTMSE and PMEGP, PSBs can provide loans without collateral to budding entrepreneurs.

• Digital Credit Flow: Leveraging digital platforms to quickly disburse and track loans for MSMEs is a major focus under EASE 7.0.

• Cluster-Based Approach: Financing entire clusters like textile hubs in Surat or leather units in Kanpur can boost scale and competitiveness.

Why it Matters:

When PSU banks nurture MSMEs, they are enabling self-reliance, empowering youth, and building local economies. These are all essential pieces of the Viksit Bharat & EASE 7.0 vision.

Fun Fact: India has over 63 million MSMEs, the second-highest in the world after China, creating 110+ million jobs and making 8,000+ products, truly powering Viksit Bharat & EASE 7.0 from the ground up!

3. Green Infrastructure: Building a Sustainable Tomorrow

As India urbanizes and modernizes, it must do so responsibly. Supporting green, clean, and sustainable infrastructure isn’t just good for the planet, it’s good for long-term economic stability. Under Viksit Bharat & EASE 7.0, PSU banks must lead the way in financing the green revolution.

How PSU Banks Can Help:

• Green Energy Projects: Loans for solar parks, wind farms, and electric vehicle infrastructure.

• Sustainable Housing: Financing eco-friendly housing projects, especially in Tier-2 and Tier-3 cities.

• Public Infrastructure: Funding metro projects, water conservation systems, and waste-to-energy plants.

India added a record 30 GW of clean energy in FY 2024–25, enough to power around 18 million homes. This achievement reflects the country’s rapid momentum toward renewable energy, and PSU banks can further accelerate this shift by channeling credit and capital into green projects.

Why it Matters:

Green infrastructure creates jobs, improves quality of life, and aligns with India’s global climate commitments. With their extensive networks and developmental mandate, PSU banks can become the “green financiers” of Viksit Bharat & EASE 7.0, proving that development and sustainability can go hand in hand. By backing eco-conscious initiatives, they help lay the foundation for a future-ready, climate-resilient India.

Aligning with AP 2 of EASE 7.0: Transforming Banks into Nation Builders

Action Point 2 under EASE 7.0 encourages PSU banks to become development partners, not just lenders. It urges them to proactively reach priority sectors, improve credit penetration, and contribute to national goals. This requires:

• Data-Driven Credit Outreach: Using data to identify credit gaps in agriculture, MSMEs, and infrastructure.

• Regional Focus: Tailoring products to local needs—for example, fisheries in coastal areas or solar energy in sunny regions.

• Collaborations: Working with government bodies, startups, and civil society to innovate in financing.

Through this proactive approach, PSU banks evolve from passive financiers to active enablers of the Viksit Bharat & EASE 7.0 mission.

Why These Sectors Matter for Viksit Bharat

Let’s connect the dots. Why do agriculture, MSMEs, and green infrastructure stand out?

Sector	Impact on Viksit Bharat & EASE 7.0
Agriculture	Boosts rural income, food security, financial inclusion
MSMEs	Drives job creation, innovation, and local growth
Green Infra	Promotes sustainability, urban resilience, clean jobs

Together, these sectors touch every Indian—farmer, youth, entrepreneur, and citizen. By empowering these three sectors, PSU banks support the real economy and fuel the transformation to a Viksit Bharat.

The Road Ahead: Making It Happen

Achieving this vision won’t happen overnight. But with EASE 7.0 as a guide, and commitment from all stakeholders, here’s what the road ahead could look like:

• Every district gets a dedicated MSME and Agri outreach plan.

• Green loans are offered with faster turnaround times and lower interest.

• Bank branches become knowledge hubs, not just transaction counters.

• Customers in remote areas feel as empowered as those in metros.

These small changes, multiplied across India, can create a giant leap toward the vision of Viksit Bharat & EASE 7.0.

Final Thoughts

India’s future depends on where we choose to invest today. For Viksit Bharat, PSU banks must go beyond traditional banking and champion the sectors that build lives, livelihoods, and a livable future. 

By focusing on agriculture, MSMEs, and green infrastructure, and aligning their efforts with EASE 7.0, they can truly become the pillars of a prosperous, inclusive, and sustainable India.

The goal is clear. The roadmap is ready. With PSBs leading the charge, Viksit Bharat & EASE 7.0 isn’t just a dream—it’s our next destination.

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Frequently Asked Questions

1. What is Action Point 2 (AP 2) of EASE 7.0, and why is it important?

AP 2 of EASE 7.0 focuses on strengthening the developmental role of PSU banks. It encourages proactive outreach, deeper credit penetration, and sector-specific strategies to support India's national priorities, especially in agriculture, MSMEs, and green infrastructure. It transforms banks from service providers into catalysts of inclusive economic growth.

2. Why should PSU banks prioritize agriculture and allied sectors?

Agriculture supports nearly 45% of India’s workforce. By improving access to timely and affordable credit, supporting allied activities (like fisheries and dairy), and financing climate-resilient farming practices, PSU banks can enhance rural income, food security, and reduce urban migration that are key goals under Viksit Bharat & EASE 7.0.

3. How do MSMEs contribute to India’s development, and what role do PSU banks play?

MSMEs contribute ~30% to India’s GDP and generate over 110 million jobs. PSU banks support MSMEs by offering collateral-free loans, digital credit access, and cluster-based financing. This boosts local manufacturing, self-reliance, and employment which are the core pillars of a Viksit Bharat.

4. What is green infrastructure, and how can PSU banks finance it?

Green infrastructure includes clean energy, sustainable housing, EV infrastructure, and waste management systems. PSU banks can offer green loans, fund renewable energy projects, and support eco-conscious urban development, helping India meet its climate goals while generating jobs and resilience.

5. How can PSU banks adopt a more proactive, development-focused approach under EASE 7.0?

Banks can:

• Use data to identify underserved regions and sectors

• Launch district-wise outreach programs for MSMEs and farmers

• Collaborate with startups, SHGs, and local governments

• Design region-specific financial products

• Simplify credit processes for green and inclusive projects

This approach aligns directly with AP 2’s goal of turning banks into active enablers of India’s growth story.