Finance Minister Nirmala Sitharaman on Friday said that given India’s vast scale and ambitions, it is essential to sustain the country’s consumption-driven growth. Economic expansion must be rooted in domestic activity—especially agriculture—which can also supply external markets.
Speaking in Pune after inaugurating the new premises of State Bank of India, Local Head Office, Maharashtra Circle at Pune, Minister said if we step back and look at the broader Indian economy, its sheer domestic scale and strong internal consumption create the need for large banks. This domestic demand itself is capable of sustaining growth, which continues to be among the fastest in the world.
“ I reiterate, the domestic consumption and the domestic economic wheels moving well have really stood by us. Even during the times when global markets are in a churn, our exports are taking a beating. But our exporters, to their credit, I must say, in spite of all the tariff and other challenges which the global uncertainties are giving them. They are because of their ingenuity, finding newer markets and performing. Exports are doing all right because they are able to find newer markets and keep their growth sustained” she said.
Consumption Story
Minister added, “ But when you look at India’s size and when you look at India’s aspirations, it is important for us to recognise that the Indian consumption story will have to be kept up. Indian economic growth based on the domestic activities such as in agriculture, which might send products outside. But for it to be well, growing, the support we have to extend to the domestic agricultural growth is a very important factor. Similarly for manufacturing, similarly for services. So unless our domestic manufacturing, agricultural growth, tourism, IT and related services sectors are given that constant support, predictable support, India’s growth story will be difficult to keep up. And in that banks have a very big role to play”
The Minister highlighted the importance of preparing India’s banking sector for the long-term vision of Viksit Bharat 2047. Referring to the Union Budget announcement, she noted that a committee will soon be formed to recommend how Indian banks should evolve to meet future economic challenges, including the need for large, efficient, and forward-looking institutions aligned with domestic growth.
Digitisation and Inclusivity
While acknowledging the growing role of digitisation in improving access and inclusivity, she emphasised that banking must retain a human interface, as customers still value professional guidance and personal interaction in financial decisions.
She urged bank officials to deepen their understanding of local economies, especially beyond well-known sectors. She stressed the need to support MSMEs and revive legacy industrial clusters across Maharashtra, particularly in eastern regions, by enabling modernisation and adopting technologies like AI. Strengthening these sectors, she noted, is essential for regional growth and for contributing to India’s broader economic aspirations.
M. Nagaraju, Secretary, DFS, government of India and Challa Sreenivasulu Setty , Chairman , State Bank of India and other dignitaries were present on the occasion.
Published on April 24, 2026