Banking Sector to Play Pivotal Role in India's 2047 Development Plan, Says Sitharaman

Finance Minister Nirmala Sitharaman, addressing a two‑day conference of public‑sector banks in New Delhi, announced that a high‑level committee will soon be constituted to determine the contribution of banks to the "Developed India 2047" blueprint.

The committee concept was introduced in the Union Budget for 2026‑27, where Sitharaman called for a comprehensive review of how banking reforms can align with the country's long‑term growth targets. With the 2047 deadline less than 20 years away, the urgency for coordinated action is clear.

Sitharaman lauded the recent strides in asset quality, noting that NPAs have plunged to record lows, providing a strong foundation for deeper reforms. She urged public banks to channel their robust balance sheets toward supporting the next phase of economic development and to help shape a financial system that matches the government's aspirations.

The minister also stressed the need to cater to India's youthful population—29% of citizens are aged 15‑29. She called for increased accessibility to education loans, entrepreneurial financing, and investment products designed for young Indians.

The forthcoming committee will gather practical ideas from banking leaders to meet emerging financing requirements. Once the recommendations are published, the sector must be ready to energize the Indian economy.