Fiscal Discipline and Financial Inclusion Drive India's Economic Agenda

Mumbai: Finance Minister Nirmala Sitharaman said on Monday that India's economic strength is being sustained by the aspirations of its citizens and steady demand from a vast domestic market. She said the government is prioritising financial inclusion, social security, skill development and fiscal prudence.

Sitharaman was speaking at HSBC India's 'Furthering Financial Inclusion' programme in Mumbai, in a conversation with the bank's CEO, Hitender Dave. She observed that a growing middle class has raised people's buying power, lending support to domestic demand.

On the question of financial security, she said providing insurance to all citizens is a top priority for the government. She cited the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri Suraksha Bima Yojana (PMSBY), which provide insurance cover at low premiums. She also referred to the Atal Pension Yojana, which offers pension coverage.

The government, she said, aims to achieve 'Insurance for All' by 2047 and is working to extend insurance across the country.

Her remarks also covered healthcare. Sitharaman said Ayushman Bharat, which provides health cover of up to Rs 5 lakh per family, has enabled people to receive treatment without selling their assets. She added that the expansion of primary health centres has improved access to health services.

She said stable governance gives businesses clarity and confidence, which helps support continuous economic growth.

Sitharaman cited a World Bank estimate that about 50 crore people have moved out of poverty. She said the achievement reflects consistent policy initiatives and better access to basic services.

“Access to schools and skill training after school education has helped reduce poverty,” she said.

On future jobs, she said the government is focusing on teaching young people the skills needed for artificial intelligence (AI) related roles. These AI-focused training programmes, she added, will help bridge the gap between industry expectations and workforce capabilities.

Sitharaman also said capital expenditure remains a major pillar of the government's growth strategy. She underlined the need to keep a tight watch on the fiscal deficit and maintain fiscal discipline.

“Government spending must be responsible,” she said.