5 Minutes Read
India must increase share in global manufacturing, says FM Nirmala Sitharaman at CII event
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
Listen to the Article (6 Minutes)
Summary
Sitharaman added that Prime Minister Narendra Modi-led government looks at the private sector as a partner in developing India. “By 2047, we see a very big role for the private sector with the government acting as a facilitator and an enabler.”
Manufacturing in India must increase at such a scale that its share rises globally as well, Union Finance Minister Nirmala Sitharaman said at the CII Annual Business Summit 2024 on May 17.
“We need to see how best this can be given policy support,” she said, adding that expanding manufacturing will help India become self-reliant.
Sitharaman cited the example of the telecom sector production-linked incentive (PLI) scheme, which she says has helped India become ‘aatma nirbhar’ in a better way.
“Sixty percent import substitution has been achieved under telecom PLI. Today, 99% of all mobiles sold in India are made in India,” she said, adding that India is becoming Apple’s second-largest manufacturing hub outside China. She pointed out that the rapid growth in the past year is very noticeable, with the number of GCCs in the country rising to 1,882, up over 50%.
“Policy stability, absence of flip-flops and a corruption-free environment is the kind of government we want,” the Finance Minister asserted.
Sitharaman added that the Prime Minister Narendra Modi-led government looks at the private sector as a partner in developing India. “By 2047, we see a very big role for the private sector, with the government acting as a facilitator and an enabler.”
She also explained that since it is the election season, there cannot be a slip in communication. The government can hear and listen but not comment, so she wants to leave some thoughts for the industry to mull over.
Also Read: FM Nirmala Sitharaman warns of household savings risks amid F&O retail trading surge
The Finance Minister claimed Prime Minister Modi is coming back with a good majority, so the government looks forward to what else can be done in the July budget and that a lot of consultation is required with the industry on that.
“The India story is a compelling growth story. We can consider some of these once the government is elected, looking at India with a global growth contribution of 18% over the next five years,” she said.
Citing an S&P report, the minister highlighted that India’s consumer market is likely to double by 2031 and that a $2.9 trillion opportunity lies here. “India will continue to remain the fastest-growing economy.”
The Reserve Bank of India (RBI) and government’s economic survey shows that today India enjoys a twin balance sheet advantage and that government and corporate balance sheets are in the pink of health. Banks can be buoyant enough to push credit growth and can be the track on which the economy will grow fast, she said.
She also spoke about AI, a space where she said skilling is being ramped up. Also, speaking about the renewables sector, she said the transition to green energy has to be responsibly built up. “The push in solar energy has shown the extent of job creation and has also generated a lot of interest.”
Also Read | Exclusive: FM Nirmala Sitharaman says poverty alleviation can’t be achieved by throwing money at the problem
Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout
3 Mins Read
Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter
Daily Newsletter
