Finance Minister Nirmala Sitharaman has emphasized that consumption is driving economic growth and that predictable policies are crucial for India's GDP trajectory. Speaking at an event, she urged banks to prioritize physical interaction with customers even as they expand globally and embrace digital transformation.
Consumption as Growth Driver
Sitharaman highlighted that domestic consumption remains the backbone of the Indian economy, contributing significantly to the country's GDP growth. She noted that sustained demand from consumers has helped insulate the economy from global headwinds to some extent.
Need for Policy Predictability
The finance minister stressed that businesses and investors require a stable and predictable policy environment to make long-term decisions. She called for consistency in regulatory frameworks to boost confidence and attract investments.
Banks Urged to Maintain Human Touch
While acknowledging the rapid digitization of banking services, Sitharaman advised financial institutions not to lose sight of the importance of physical customer engagement. She said that face-to-face interactions build trust and help address customer grievances effectively.
Global Expansion with Local Focus
As Indian banks expand their global footprint, the minister reminded them to stay connected with their domestic customer base. She suggested a balanced approach that leverages technology while preserving personalized service.
The remarks come amid ongoing discussions about India's economic growth prospects and the role of policy stability in attracting foreign investment. Sitharaman's comments reinforce the government's focus on consumption-led growth and regulatory predictability.
