‘Consumption sustaining growth’

Predictable support essential for GDP expansion, says Sitharaman

PTI pune

Domestic consumption is sustaining the growth momentum in the economy, and predictable policy support is essential to ensure that the pace of GDP expansion continues, Finance Minister Nirmala Sitharaman said on Friday.

Speaking at an event organised by SBI in Pune, Sitharaman also said that a committee of bankers is looking into the issue of whether to allow exclusive distribution tie-ups for selling third-party products by banks or adopt an open architecture approach. She also urged banks to focus on physical contact with customers as they go global and digital.

The Finance Minister further said that the disinvestment process of IDBI Bank will continue.

"Consumption emerging out of its domestic market itself is able to sustain our growth, which is the fastest even now in the world," she said.

Sitharaman said that while consumption is necessary for the growth process to continue, it is also pertinent to have predictable policies.

"Unless our domestic manufacturing, agricultural growth, tourism, IT and related services sector are given that constant support, predictable support, India's growth story will be difficult to keep up," she added.

FM warns of unprecedented risks from Mythos AI

FM Sitharaman on Friday said that Indian banks are adequately prepared to deal with emerging technology-related challenges, even as she raised fresh concerns over risks linked to a new artificial intelligence model developed by Anthropic.  FM Sitharaman noted that India is closely monitoring the potential threats posed by Anthropic's Mythos AI model, which has drawn global attention for its advanced capabilities. 

The finance minister said the MeitY is actively engaging with international governments and authorities to better understand the risks associated with the model and assess its possible impact on India's banking ecosystem.