In a ringing endorsement of Prime Minister Narendra Modi’s financial inclusion policies, Union Finance Minister Nirmala Sitharaman today celebrated the dramatic rise in credit-driven consumption in rural India. The surge, credited largely to new bank account openings under the Pradhan Mantri Jan Dhan Yojana (PMJDY) and deeper penetration of consumer financing, marks what Sitharaman is calling a “revolutionary shift.”
According to reports, 62% of two-wheeler purchases in rural India are now driven by credit, surpassing urban figures at 58%. Credit-driven purchases of electronics and smartphones are also rising rapidly, with its financing now accounting for 30-40% of all purchases in rural markets, up sharply from 20% just two years ago.
Industry leaders, including Hero MotoCorp and Honda Motorcycle & Scooter India (HMSI), have confirmed this trend, with HMSI reporting a sharp rise in finance penetration in rural markets from 40% in FY21 to an impressive 51% in FY25. This growth has been driven by the Modi government’s focus on enhanced digital banking infrastructure, faster loan approvals, and more attractive financing options, making two-wheeler ownership more accessible to rural consumers.
“Rural India is no longer a passive observer of India’s growth, it is an active driver of it,” claimed Sitharaman.
“Under the Pradhan Mantri Jan Dhan Yojana, which recently celebrated its 10th anniversary, 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% of Indian adults now holding formal financial accounts, up from a mere 50% in 2011, PM Modi has spearheaded the most transformative financial inclusion drive in modern Indian history.”
The government’s data shows that the total number of PMJDY accounts has risen from 14.7 crore with deposits of Rs 15,670 crore in March 2015 to an astounding 53 crore accounts with a total balance of Rs 2.31 lakh crore. This threefold rise in both account numbers and deposits underscores the scheme's role in driving financial inclusion and economic empowerment.
By ensuring that 66.6% of PMJDY accounts are held in rural and semi-urban areas, the government has opened the floodgates for financial companies to extend credit in these markets, and the result is an explosion of demand for premium products.
Sitharaman compared this with the approach of the previous governments’ policies, claiming that they had "ignored" the rural poor. "For decades, India’s rural population was abandoned by a system that paid lip service to financial inclusion, and even blocked expansion of such credit access to the poor. It took the decisive leadership of PM Modi to bring the rural poor into the financial system and unlock their potential. The opposition blocked progress while Modi empowered rural India with pro-poor reforms and welfare policies.”
"This is what PM Modi's India looks like - an India where even the most forgotten corners of the nation can participate in its prosperity. A new class of aspirational new Indians are rising in rural India."
“PM Modi has given the rural poor the tools to participate in our nation’s growth story,” Sitharaman declared. "The message is clear—Modi delivers, and even the last man in line prospers!"
