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Below the Pre-Budget Quote on what lenders are expecting from FM by Manish Shah, MD & CEO, Godrej Capital

“As India moves into the next phase of financial deepening, the focus must shift from simply expanding credit to improving the quality, accessibility, and sustainability of finance. While capital availability has improved, the real opportunity lies in making finance more affordable, flexible, and aligned to the cash-flow realities of households, MSMEs, and emerging entrepreneurs.

The Union Budget 2026 can play a meaningful role by deepening domestic liquidity and strengthening risk-sharing frameworks such as credit guarantees and co-lending structures. These measures can help lower borrowing costs, support longer and more predictable tenures, and create repayment structures that offer greater certainty to borrowers.

Encouraging stable long-term savings and recognising high levels of tax compliance can further strengthen the funding base of the financial system and reinforce trust in formal participation. The objective is not just to build a larger financial ecosystem, but a more resilient and efficient one, where capital flows productively, risk is shared responsibly, and finance supports India’s next phase of inclusive and sustainable growth.”

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