Consumption Remains Growth Engine, Says FM Sitharaman; Calls for Policy Stability

Pune, Apr 24 (BNP): Domestic consumption continues to remain a key driver of India’s economic growth, and predictable policy support is essential to sustain the country’s GDP expansion momentum, Union Finance Minister Nirmala Sitharaman said on Friday.

Speaking at an event organised by State Bank of India in Pune, the Finance Minister highlighted that strong consumer demand is helping the economy maintain steady growth despite global uncertainties. She emphasised the need for consistent and predictable policy measures to support long-term economic stability.

Sitharaman also said that a committee of bankers is currently examining whether banks should be allowed to enter exclusive tie-ups for distributing third-party financial products or move towards an open-architecture model that allows wider participation.

She further advised banks to maintain a strong focus on customer relationships and physical interaction, even as the sector rapidly expands its digital and global footprint.

The remarks underline the government’s emphasis on balancing digital transformation in banking with strong customer engagement and a stable policy environment to support sustained economic growth.