Finance Minister Nirmala Sitharaman said that domestic consumption will sustain India’s growth, which remains the fastest in the world. She noted that Indian exporters, despite facing challenges such as tariffs, are discovering new markets and sustaining growth through their ingenuity. “The Indian consumption story must continue,” the Finance Minister stated. She highlighted that strong domestic consumption and economic activity have supported the economy amid global market turbulence.
Sitharaman said it was important to offer predictable and consistent support to domestic manufacturing, agriculture, tourism, IT, and related services to ensure India’s growth trajectory. She also suggested upgrading and supporting legacy industrial clusters.
She was speaking at the inauguration of the State Bank of India’s local head office for the Maharashtra Circle in Pune on Friday. SBI has relocated its office from Mumbai to Pune to be closer to its customer base in the rest of Maharashtra.
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Reshaping Banking
The Finance Minister stressed the need for large banks to cater to the requirements of a growing economy. As announced in Budget 2026, a committee will soon be established to examine banking and finance as part of the Viksit Bharat initiative and how Indian banks can prepare for the challenges of 2047. The committee’s recommendations will play a crucial role in reshaping the Indian banking system and creating futuristic and large banks that understand the Indian economy, Sitharaman said.
According to the Finance Minister, the State Bank of India is already working toward achieving the aspirations for 2047 by decentralising its decision-making and moving closer to its customers in Pune. She noted that while SBI has grown to be the largest bank, it has maintained its agility and responsiveness. She urged banks to remain in touch with their customers, especially as digital banking continues to grow. Bank customers need to have a human element in their interactions, despite the increasing pace of digitisation, she added.
Balancing Digitisation
In a media interaction, responding to a question about IDBI, the Finance Minister said that the disinvestment process for IDBI Bank will go on.
She also mentioned that a committee of bankers is assessing whether to permit banks to have exclusive distribution agreements for selling third-party financial products or to adopt an open architecture approach. The IBA chairman and IBA will engage with banks to determine the best course of action, considering the risks associated with relying on a single entity or multiple entities, she said.
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In response to a question regarding policy support for sectors affected by the ongoing Middle East crisis, she stated that the government would explore possible measures, as the situation remains dynamic. She highlighted the fact that the crisis has not impacted the asset quality of banks, with non-performing assets at a multi-decade low. However, she pointed out that the government has implemented a targeted package for entities affected by US tariffs.
Addressing concerns about the threats posed to the banking system by Anthropic’s AI model, Sitharaman mentioned that lenders have been encouraged to collaborate on this issue under the leadership of SBI chairman C S Setty, who also chairs the IBA. “In the coming weeks, there will be extensive interactions among banks to identify necessary investments, explore new technologies, and determine how AI can be utilised to address these challenges,” she said.
TOPICSNirmala SitharamanThis article was first uploaded on April twenty-four, twenty twenty-six, at zero minutes past six in the evening.