India is the fastest-growing economy in the world. In view of its immense potential, the Hon’ble Prime Minister of India, Shri Narendra Modi, launched ‘Viksit Bharat’ mission @2047: Voice of Youth’’ via video conferencing on 11.11.2023. The Viksit Bharat Mission (literally, ‘Developed India’) is India’s long-term, multi-dimensional development vision aiming to transform the nation into a fully developed, inclusive, sustainable, and globally influential country by 2047-its 100th year of independence. It was launched as part of the Interim Budget 2024-25. The mission seeks to elevate India into a developed nation by 2047 under the ‘Amrit Kaal’ framework. Central to the mission is citizen engagement through platforms such as Voice of Youth and MyGov idea submissions, encouraging ‘Sabka Prayas’ (everyone’s effort). It addresses four core demographics: Yuva (Youth), Garib (Poor), Mahilayen (Women), Annadata (Farmers) and rests on six key pillars: i) Global manufacturing leadership, ii) Revival of Indian knowledge systems, iii) Exports and branding of Indian goods, iv) Green and renewable energy, v) Tourism and vi) Inclusive development globally.

Goals and targets

Economic ambitions: Position India as a $30-40 trillion economy by 2047, requiring consistent GDP growth of 7-10 percent annually.

Social milestones: Achieve zero poverty, universal quality education and healthcare, full literacy, a 100 percent skilled workforce, elevated women's participation (70 percent), and high agricultural productivity.

Sustainability and environment: Commitment to net zero carbon emissions and green growth is woven into the strategic pillars.

The vision of ‘Viksit Bharat’ @2047 places immense responsibility on key financial institutions, especially Public Sector Banks (PSBs).

Contribution of PSBs in economic growth

The main contribution of PSBs can be summarised as follows:

1. Financial inclusion and social welfare

Jan Dhan Yojana: Initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY) have significantly increased the number of bank accounts, bringing millions into the formal banking system. As of June 11, 2025, PMJDY has achieved significant milestones in financial inclusion. Over 55 crore Jan Dhan accounts have been opened, with deposits exceeding INR 259,397.13 crore. PSBs have more than 80 percent share in them.

DBT (Direct Benefit Transfer): Seamless subsidy transfer through PSBs ensures transparency and inclusion. India’s DBT system has helped the country achieve cumulative savings of INR 3.48 lac crore by plugging leakages in welfare delivery, according to a new quantitative assessment by the BlueKraft Digital Foundation. The report also finds that subsidy allocations have been halved from 16 percent to 9 percent of total government expenditure since the implementation of DBT, reflecting a major improvement in the efficiency of public spending. One of the key features of DBT is the use of the JAM trinity, which stands for Jan Dhan bank accounts, Aadhaar unique ID numbers and mobile phones. This framework has enabled targeted and transparent transfers on a massive scale.

2. Credit support to priority sectors

Agriculture and MSMEs: The overall credit disbursement to priority sectors, including Agriculture, MSME and Social Infrastructure by banks in 2019 was INR 23,01,567 crores, which has risen to INR 42,73,161 crores in 2024, recording an increase of 85 percent over the six-year period. Within priority sector lending, the overall credit disbursement to the agriculture sector has seen steady and positive growth from 2019 to 2024. In 2019, the total disbursement to the sector was INR 8,86,791 crore, and by 2024, it had significantly increased to INR 18,27,666 crore (Data for Agriculture includes credit disbursement towards agriculture infrastructure by banks). The overall credit disbursement to the MSME sector has also increased steadily from INR 10,99,055 crore in 2019 to INR 21,73,679 crore in 2024.

Mudra loans: Over INR 22 lac crore sanctioned to 41 crore beneficiaries, with PSBs contributing 65 percent of the disbursement. The Pradhan Mantri Mudra Yojana (PMMY) has recently seen an increase in the maximum loan limit. The limit has been raised from INR 10 lac to INR 20 lac, with a new category called ‘Tarun Plus’ introduced for successful Tarun loan borrowers. This enhancement was announced in the Union Budget 2024-25 and took effect on October 24, 2024, according to the PIB. The Credit Guarantee Fund for Micro Units (CGFMU) will also provide guarantee coverage for these enhanced loans.

Microfinance: PSBs contribute through various schemes like the Self-Help Group-Bank Linkage Programme (SHG-BLP) and direct lending, reaching millions of households. The latest RBI data indicates continued growth and expansion in microfinance, with significant disbursements and loan accounts. As of March 31, 2024, bank loans outstanding under the SHG-BLP were INR 2,59,663.72 crore, with an average loan per SHG of INR 3.35 lac, according to the official website of NABARD.

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