Finance minister Nirmala Sitharaman on Wednesday urged India Inc. to not delay investments and take more risks while speaking at CII’s Global Economic Policy Summit, 2021. She said the Indian economy is among the fastest growing globally and committed that policy hindrances will be addressed as and when brought to the notice of the government.
"At a time when India is looking at healthy growth, looking forward to industry to give additional impetus to growth, the PM has furthered additional spending on infrastructure, I want India Inc. to be a lot more risk taking. Industry should not delay creation of additional capacity," Sitharaman said.
She said India is the fastest-growing economy globally on the back of collective efforts of the government and the common people of the country.
In her address, Sitharaman said the demand side of the economy is now "able to completely manifest itself". Money has started moving out, she said, referring to the revenge consumption witnessed in the recent festive season. “In the last three weeks preceding Deepawali, more than ₹75,000 crore worth of credit was distributed in out-reach programmes by banks across four-five categories,” Sitharaman added. She mentioned that car sales would have been better but for the shortage of chips and the global container shortage.
“Banks, NBFCs participated in the credit distribution programme. This is a collective story of India trying to stand up again,” FM said.
Sharing the outcome of the infrastructure push announced in the budget to revive growth, Sitharaman said, “Allocation to capital expenditure was enhanced 34% to ₹5.5 lakh crore this year. All departments are moving fast notwithstanding the handicap faced during the second wave."
In the last two weeks, Sitharaman has reviewed capital expenditure progress of the ministries of road transport, railways, and civil aviation, among others.
Sitharaman also mentioned that new-age industries and start-ups are going to make a big difference to the Indian economy and banking sector has remarkably turned around. “NPAs are drastically down. Recoveries are going up. More than ₹10,000 crore has been raised by public sector banks.”
Earlier, in the same event, DIPAM secretary Tuhin Kant Pandey said the government plans to complete the transfer of Air India by December and the country will see privatisation of at least five-six PSUs after a span of close to two decades. Pandey added that the LIC stake sale will take place by the last quarter of the current financial year.