SBI and the Changing Nature of Economic Growth
SBI’s New CHAKRA Power India’s Next Economic Boom: India’s future growth trajectory is increasingly linked to technology-intensive and capital-heavy industries rather than traditional sectors. Recognising this structural shift, State Bank of India launched CHAKRA on 31 January 2026 to realign banking capabilities with emerging economic realities.
The initiative reflects a strategic transition in India’s banking approach, where financing decisions must account for innovation risks, long gestation periods, and evolving regulatory frameworks.
Static GK fact: State Bank of India was established in 1955 and accounts for nearly one-fourth of India’s total banking assets.
Understanding CHAKRA and Its Purpose
CHAKRA, or Centre of Excellence for Sunrise Sectors, is an institutional platform within SBI designed to evaluate and finance future-oriented industries. Unlike conventional lending models based on historical cash flows, CHAKRA focuses on technology assessment, risk modelling, and sectoral expertise.
The centre aims to convert complex technologies into bankable financial structures, enabling informed large-scale lending without compromising financial stability.
Static GK Tip: Centres of Excellence are commonly used globally to pool specialised knowledge and standardise decision-making in high-risk sectors.
Key Sunrise Sectors Identified by SBI
SBI has identified eight sunrise sectors critical to India’s long-term transformation. These include renewable energy, advanced cell chemistry and battery storage, electric mobility, green hydrogen, semiconductors, decarbonisation, smart infrastructure, and data centres.
These sectors are directly linked to India’s climate goals, digital economy expansion, and manufacturing self-reliance under broader national strategies.
Static GK fact: India has committed to achieving net-zero emissions by 2070, increasing the relevance of green and clean technologies.
Scale of Investment and Capital Needs
According to SBI estimates, these sunrise sectors will require nearly ₹100 lakh crore in capital over the next five years. Around ₹20–22 lakh crore is expected to be financed by banks and NBFCs, while the remainder will come from private equity, corporates, multilateral agencies, and foreign banks.
This massive requirement underlines the need for coordinated and well-informed financing mechanisms to avoid systemic risks.
Leadership Vision Behind CHAKRA
SBI Chairman Challa Sreenivasulu Setty described CHAKRA as a “lighthouse institution” for India’s financial ecosystem. He emphasised that the centre would enhance not only SBI’s internal credit decisions but also the overall lending confidence of the banking system.
The focus is on aligning domestic finance with global best practices to support India’s next growth cycle.
Static GK Tip: Lighthouse institutions guide policy and market behaviour by setting benchmarks and best practices.
How CHAKRA Will Function
CHAKRA will act as a bridge between finance, technology, and policy by engaging with development finance institutions, multilateral agencies, industry bodies, start-ups, academic institutions, and think tanks. This collaborative model aims to reduce information gaps and perceived risks.
By improving project evaluation and risk-sharing frameworks, CHAKRA is expected to enable Indian banks to fund innovation-driven sectors with greater confidence.
Static Usthadian Current Affairs Table
SBI’s New CHAKRA Power India’s Next Economic Boom:
| Topic | Detail |
| Initiative Name | CHAKRA |
| Launched By | State Bank of India |
| Launch Date | 31 January 2026 |
| Core Objective | Financing sunrise sectors |
| Key Sectors Covered | Green hydrogen, EVs, semiconductors, data centres |
| Estimated Capital Need | ₹100 lakh crore |
| Bank and NBFC Share | ₹20–22 lakh crore |
| Strategic Role | Risk assessment and knowledge support |
| Leadership Vision | Lighthouse institution for finance |
| Economic Impact | Supports long-term structural growth |
