New Delhi: Finance Minister Nirmala Sitharaman Wednesday urged the industry captains to take more risk and increase investment to support Prime Minister Narendra Modi’s vision of a self-reliant India which aims to reduce the country’s dependence on imports in critical sectors.
Addressing an event organized by the industry body Confederation of Indian Industries in New Delhi, Sitharman told the industry leaders that the country cannot remain dependent on imported products as was the case during the initial days of the outbreak of Covid-19 global pandemic when India imported everything related to pandemic management from abroad including personal protective kits (PPE), Covid testing kits and other essential items.
“Unless each one of us make our own efforts to make sure that this country can stand on its own and we are also able to supply to the world, our revival will always be facing difficulty,” Sitharaman said.
The finance minister, who is holding regular review meetings with the different ministries and departments, including state governments and private sector, for increasing capital expenditure, urged the industry leaders not to delay the investment for increasing the production capacity.
India’s imports during the first seven months of the current fiscal (April-October period) have jumped by nearly 80%, from just $185 billion in 2020 to more than $331 billion in April-October in 2021, leaving a cumulative trade deficit for the period at around a massive $99 billion.
Talking about the situation, Sitharaman said the country cannot completely remain dependent on imports to meet its essential needs and the private sector should come forward and boost domestic production.
“I would strongly appeal to the Indian industry that you shouldn’t further delay looking at increasing capacities, you shouldn’t further delay looking at new areas where you should move in for future investments, you shouldn’t delay finding partners who can give you such technologies,” said the finance minister.
Talking about the country’s energy security, Sitharaman said India needs newer technologies in the field of hydrogen, nuclear, solar and wind power and Indian industry should forge partnership with foreign companies.
“At a time when India is looking at the industry to give that additional impetus to the growth, at a time when the Prime Minister is committed to furthering and increasing investment for infrastructure development, at a time when India will spending more on health sector, I want Indian industry to, the India Inc to be lot more risk taking,” said the finance minister.
Sitharaman said: “I want Indian industry to show that yes, we stand for India and we will build India.”
Removing compliance burden
She said the government was committed to removing any obstacles and further improving the ease of doing business.
Sharing the details of Prime Minister Modi’s discussion with the Union ministers in the Cabinet meeting held in the morning, Sitharaman said the Prime Minister asked them to completely remove the unnecessary compliance burden.
“It is something to tell you where the Prime Minister’s intent is. He told us, each of us ministers: Please go back to your departments and tell me what your compliance burden you are sitting up with? Why can’t you remove it? Make it easy for industry,” she told the gathering.
Responding to the Finance Minister’s appeal, Uday Kotak, past President of the CII said the industry shared her feeling to build India faster.
Talking about the thinking within the industry about increasing the capital expenditure, Kotak said there was much greater confidence and preparation now than what was there a year ago.
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