FM terms credit-led consumption as revolutionary shift

New Delhi: Finance Minister Nirmala Sitharaman has lauded the meteoric rise in credit-driven consumption in small cities and towns, calling it a revolutionary shift that has been made possible due to the Pradhan Mantri Jan Dhan Yojana (PMJDY).

A definitive surge has been reported in household consumption in tier-2, 3 and 4 cities and even beyond, evidenced by the sales growth of two-wheelers, ACs, refrigerators, smartphones and FMCGs in small towns and cities.

According to FM Sitharaman, “Rural India is no longer a passive observer of India’s growth, it is an active driver of it”.

The Finance Minister said that under the PMJDY, which recently celebrated its 10thanniversary, over 53 crore bank accounts have been opened, bringing millions of rural Indians into the formal financial system for the first time.

With more than 80 per cent of Indian adults now holding formal financial accounts, up from a mere 50 per cent in 2011, PM Modi has spearheaded the most transformative financial inclusion drive in modern Indian history, she noted.