State Bank of India (SBI) Chairman CS Setty on Wednesday, 23 September said the next phase of global investment will be driven by sunrise sectors — including renewable energy, semiconductors, battery storage, green hydrogen, robotics and biotechnology — and stressed that India's banking and financial sector must play a central role in supporting this structural shift. Setty made the remarks at the inauguration of the 13th SBI Banking & Economics Conclave in New Delhi.

Key Remarks at the Conclave

Setty said these emerging industries are poised to attract significant global capital in the years ahead, creating fresh opportunities for economic growth and technological advancement. He noted that India is well-positioned to participate in this shift, backed by its skilled workforce, entrepreneurial ecosystem and growing technological capabilities.

However, he cautioned that the country's challenge is not a shortage of talent or innovation potential, but the ability to convert those strengths into commercially viable businesses, advanced manufacturing capabilities and intellectual property with a global presence.

India's Competitive Edge and Its Gaps

According to Setty, the larger opportunity lies in building enterprises that can compete internationally and establish India as a leader in frontier technologies. He emphasised that economic development should not be measured solely by high growth rates, but also by the capacity to translate that growth into global competitiveness and sectoral leadership.

The transition, he noted, requires strengthening India's ability to build world-class enterprises capable of holding their own in international markets — a challenge that goes beyond policy and into execution at scale.

The Evolving Role of Banks

Setty highlighted the shifting mandate of banks and financial institutions as the economy pivots toward high-value manufacturing, green technologies and innovation-led growth. He said the financial sector must adapt its frameworks and financing models to meet the requirements of capital-intensive and technology-driven industries.

Banks, he argued, will be instrumental in creating the financial architecture necessary to support innovation, investment and scale. As industries increasingly focus on sustainability and global competitiveness, the banking system will need to evolve alongside them to provide long-term structural support.

What This Signals for India's Financial Sector

This comes amid a broader global realignment of capital flows toward clean energy and deep-tech sectors, with countries such as the United States, China and members of the European Union already competing aggressively for dominance in semiconductors and green hydrogen. For Indian banks — historically more comfortable with infrastructure and working-capital lending — the pivot to financing frontier-technology ventures represents both an opportunity and a structural test. The remarks from the head of India's largest public-sector lender carry particular weight, signalling that SBI is preparing to reorient its own lending priorities in line with this emerging investment thesis.

Sectoral financing guidelines and updated frameworks from the banking system are expected to take shape as these industries scale up domestically over the coming years.