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; Leverage Opportunities At National, Global Level Through Govt-Industry Partnerships: FM Nirmala Sitharaman, Minister of Finance and Corporate Affairs at CII Annual session
FinTech BizNews Service
Mumbai, May 17, 2024: The government looks towards forging partnerships with the private sector to take a winning leap forward to realise the goal of emerging as a developed country by 2047. There is a big role for the private sector for 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 new India, the FM 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 recognised 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 FM 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 FM 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.
Mr. K.V Kamath, former Chairman, ICICI and chairman, National Bank for Financing Infrastructure and Development, was conferred with the CII President’s award for 2024 for his exemplary contribution to industry and society.
The Women Exemplar Award was presented by the FMduring the inaugural session of the Summit to deserving women for their significant contribution to the society at the grass root level.
India will develop all the requisite national strengths that will make it a leading power in the times to come: Dr S Jaishankar
“We firmly believe that India will develop all the requisite national strengths that will make it a leading power in the times to come” stated Dr S Jaishankar, Hon’ble Minister of External Affairs, Government of India. This view further appreciates the creativity and ambition of the people of India, and promise opportunities to take this forward, the Minister added. “At the global level there is a broader consensus about India being a key source of growth, a valuable addition to supply chains and an important pool of talent”, Dr Jaishankar stated. He was speaking at the Special Plenary Session 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.
Speaking on the many global challenges faced by India and the world since the Covid-19 pandemic, Dr Jaishankar stated that India has seen robust growth with the help of sweeping reforms and a sharp focus on capital spending with a focus on infrastructure development. This included a combination of making India self-reliant, Ease of Doing Business reforms, large scale socio-economic programmes, a conducive environment for business growth and start-up culture, among others, he added.
Highlighting some of the geopolitical realities that the word is faced with today – including the Russia-Ukraine conflict, an escalation of the Iran-Israel conflict that can potentially spread to the Middle East, the three F crises of Fuel, Food and Fertilizer, among others, Dr Jaishankar stated that India’s endeavour would be to mitigate the impacts of these crises, while continuing to stabilize the world. It is this judicious combination of ‘Bharat First’ and ‘Vasudhaiva Kutumbakam’ that defines the image of India as “Vishwa Bandhu”, he added.
Dr. Jaishankar emphasized that three critical challenges that India is faced with given the current challenging global environment are that of employment, especially those faced by the MSMEs, technology and national security. He added that policies and initiatives such as the Production Linked Incentive Schemes, financial support for MSMEs, removal of regulatory impediments, the creation of a conducive environment for businesses and a commitment to promote manufacturing, have been continuously undertaken by the Indian Government, that will help India leapfrog to a ‘Viksit Bharat’ or a developed nation status by 2047. The continued focus on reforms requires the support of industry, Dr Jaishankar emphasized.
Elaborating on India’s external engagement endeavours, Dr. Jaishankar stated that while India’s export promotion efforts would continue along with strong partnership building, current times call for something more than business-as-usual where ‘trust’ and reliability’ will become critical factors. These would be particularly important in the areas of de-risking supply sources and enhancing collaboration in sensitive, critical, and emerging technologies.
The Minister added that it was crucial to align India’s economic priorities with strategic interests whether in terms of access to new markets, technology, investments education and tourism. He also emphasized the importance of creating logistical corridors for India as new production and consumption centres emerge across the world along with the need for expanding scale and quality of skilling at home, as a new global workforce emerges. The goal is to make India a hub for innovation, research and design, he added further.
Mr R Dinesh, President, CII, stated that “internationalization and globalization will remain top priorities for industry along with facilitating trust-based partnerships”.
Speaking at the session, Mr Chandrajit Banerjee, Director General, CII stated that building trust will continue to be a top priority for CII as we move from this year to the next, along with a thrust on building strategic partnerships and strengthening the manufacturing sector.
