Institutional external finance allocations to ESG funds expanded 15%, supporting outperformance versus benchmark indexes. Analysts see consistent alpha generation if sustainable investment mandates hold. NEW DELHI (Reuters) -India's Finance Minister Nirmala Sitharaman said on Friday that the government is committed to increasing state capital spending to support economic growth, stressing that the economy has remained resilient despite global headwinds. Overall, the survey results indicate that the monetary policy easing cycle is continuing to drive down the bank interest rates charged to firms, while indicating a slight tightening of other lending conditions. A net 14% of firms reported lower bank interest rates, after a net 12% in the previous quarter ( Chart 1 in Section 2). This drop was driven by large firms (31%, from 26% in the previous quarter), while a net 2% of small and medium-sized enterprises (SMEs) reported an increase in interest rates (from a net 1% reporting a decrease in the previous quarter). However, both large firms and SMEs indicated a further slight net tightening of other loan conditions, relating to both other financing costs and collateral requirements. European stock indexes are seeing increased external finance participation, with cross-border portfolio investments rising 8% in May. This trend could sustain the DAX above 18,900, contingent on ECB policy stability.