India's Finance Minister Sitharaman Targets 500 Smaller Cities as New Growth Engines

Finance Minister Nirmala Sitharaman said India's next consumption boom will be driven by the middle‑class population expanding beyond the traditional metros. She estimated the middle class now makes up about 31% of the population and accounts for roughly 93% of all consumer spending. Sitharaman highlighted that nearly 500 tier‑II and tier‑III cities are expected to become the new economic hubs as wealth distribution spreads.

The minister linked this shift to government measures such as financial‑inclusion programmes, GST rationalisation, collateral‑free loans for small businesses and the Pradhan Mantri Awas Yojana. She also noted AI‑skilling camps are being organized at the district level to prepare workers for digital transformation. Sitharaman pointed out that micro, small and medium enterprises now contribute close to 40% of India's exports and that the country is projected to overtake China in middle‑class size between 2030 and 2035, reinforcing domestic consumption as a key growth driver.