CII Annual session
The government looks towards forging partnerships with the private sector to take a winning leap forward to realize the goal of emerging as a developed country by 2047. There is a big role for the private sector in making this happen and the government would be a facilitator and enabler in the process said Ms. Nirmala Sitharaman, Minister of Finance and Corporate Affairs, Government of India. She was speaking at the Annual Business Summit 2024 of the Confederation of Indian Industry (CII) with the theme ‘Co-Creating the Future Responsibly: Role of Business’, at New Delhi today.
Articulating the vision for a new India, the Finance Minister stated that the country presents immense opportunities for growth which extends to all segments of the economy. For one, India’s growth story is a compelling one and the country would contribute significantly to global growth, a feature which has also been recognized and affirmed by global agencies such as the IMF and S&P.
The large consumer market, which is expected to double by 2031, a rise in consumption spending, and a secular rise in spending on financial services would assure that the country would continue to remain the fastest growing economy in the future, she added.
Elaborating further on the subject, she said that according to the RBI and the Economic Survey, India has graduated from the twin balance sheet problem of the past to the twin balance sheet advantage which has led to vibrancy in the market thereby propelling investment expansion by corporates on one hand and willingness and capacity of banks to lend. Secondly, the demographic dividend would be with the country for the next 30 years and dependency level is at a historic low. When complemented with skill development, through public private partnership, inclusive of areas such as artificial intelligence, big data etc, this is a sure shot measure to bring prosperity and raise consumer demand.
Third, India’s transition towards green energy and sustainable future is sure to generate new markets and new demand. The solar push by the government as well as an impetus towards green hydrogen and green ammonia would also provide significant job opportunities to the youth, she maintained.
The Finance Minister also alluded to the pressing need to increase manufacturing competitiveness and called for greater sophistication and improved productivity. The government would provide supportive policies for India to be a part of the global value chain.
India is among the top investment destinations and is at an advantageous position to take advantage of global investors who are attempting to derisk their operations as a result of the China plus one policy. This would also help the country to become self-reliant. The PLI scheme has contributed significantly towards this endeavour. For instance, the PLI scheme has transformed the mobile and electronic sectors and value addition in smart phones has grown tremendously, she added.
And among services, India remains a preferred destination with over 50 percent of global capability centres having based their operations in the country. According to the Finance Minister, policy stability, corruption free decision making, facilitative government policies and robust legal framework work in consonance to make India an attractive destination for business.
Mr R. Dinesh, President, CII, spoke about a range of issues on which CII has worked with the government such as reduction of corporate tax rates, extending GST compliance date during the Covid period, adopting a capex led growth strategy, among others and complimented the finance minister for being receptive to the CII suggestions even while reining in fiscal deficit with a laser focus. CII is working towards building a trust-based relationship with the government, he added.
Mr Sanjiv Puri, President Designate, CII, stated that industry has been responsive towards its collective responsibility and looks forward to continue its engagement with the government to fulfil India’s development priorities and realising the dream of Viksit Bharat.
