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!"

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Cabinet approves development of National Maritime Heritage Complex (NMHC), Lothal, Gujarat.
October 09, 2024

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the development of National Maritime Heritage Complex (NMHC) at Lothal, Gujarat. The project will be completed in two phases.

The Cabinet also accorded in-principle approval for Phase 1B and Phase 2, as per master plan by raising funds through voluntary resources/ contributions and their execution after raising of the funds.

Construction of Light House Museum under Phase 1B will be funded by Directorate General of Lighthouses and Lightships (DGLL).

A separate society will be set up, for development of future phases, to be governed by a Governing Council headed by Minister of Ports, Shipping & Waterways, under Societies Registration Act, 1860 for implementation, development, management, and operation of NMHC at Lothal, Gujarat.

The phase 1A of the project is under implementation with more than 60% physical progress and is planned to be completed by 2025. Phases 1A and 1B of the project are to be developed in EPC mode and Phase 2 of project will be developed through land subleasing/ PPP to establish NMHC as a world class heritage museum.

Major impact, including employment generation potential:

Around 22,000 jobs are expected be created in development of NMHC project, with 15,000 direct employment and 7,000 indirect employment.

No. of beneficiaries:

The implementation of NMHC will boost growth and immensely help the local communities, tourists and visitors, researchers and scholars, government bodies, educational institutions, cultural organisations, environment and conservation groups, businesses.

Background:

As per the vision of the Prime Minister to showcase 4,500 years old maritime heritage of India, Ministry of Ports, Shipping & Waterway (MoPSW) is setting up a world class National Maritime Heritage Complex (NMHC) at Lothal.

The masterplan of the NMHC has been prepared by renowned architecture firm M/s Architect Hafeez Contractor and the construction of phase 1A has been entrusted to Tata Projects Ltd.

As per the vision of the Prime Minister to showcase 4,500 years old maritime heritage of India, Ministry of Ports, Shipping & Waterway (MoPSW) is setting up a world class National Maritime Heritage Complex (NMHC) at Lothal.

The masterplan of the NMHC has been prepared by renowned architecture firm M/s Architect Hafeez Contractor and the construction of phase 1A has been entrusted to Tata Projects Ltd.

NMHC is planned to be developed in various phases, wherein:

Phase 1A will have NMHC museum with 6 galleries, which also includes an Indian Navy & Coast Guard gallery envisaged to be one of the largest in the country with external naval artefacts (INS Nishank, Sea Harrier war aircraft, UH3 helicopter etc.), replica model of Lothal township surrounded by open aquatic gallery, and jetty walkway.

Phase 1B will have NMHC museum with 8 more galleries, Light house museum which is planned to be world’s tallest, Bagicha complex (with car parking facility for about 1500 cars, food hall, medical centre, etc.).

Phase 2 will have Coastal States Pavilions (to be developed by respective coastal states and union territories), Hospitality zone (with maritime theme eco resort and museuotels), Recreation of real time Lothal City, Maritime institute and hostel and 4 theme based parks (Maritime & Naval Theme Park, Climate Change Theme Park, Monuments Park and Adventure & Amusement Park).