While sounding confident of BJP’s return to office, she said govt will work with the private sector to drive India’s development journey.
“Much against the advice given by some economists that India should no longer be looking at manufacturing or ramping up manufacturing, I would like to highlight the fact that manufacturing must increase…We need to have greater sophistication in our product manufacturing,” Sitharaman said at the CII’s annual general meeting, while listing out areas where domestic manufacturing has reduced reliance on imports. Former RBI governor Raghuram Rajan is among the votaries of a services-led strategy for India.
The minister said policy stability, responsiveness to issues flagged by industry and a corruption-free regime have been crucial for the economy’s consistent and steady growth. “We are making sure that the facilitation, both in legislative and also the legal frameworks, are all simultaneously going on, having heard from the industry that rapid changes are required in our compliance regime,” she said.
Sitharaman promised that a similar strategy will be followed. “We are confident that PM Narendra Modi is coming back with a good majority… Soon after govt is formed, we look forward to a more pointed engagement with the CII to see what best can be done in the July budget, which will be the full year’s budget,” she said.
FM pointed to multiple global agencies, including the International Monetary Fund and S&P, to argue that India was poised for rapid growth, especially when corporate and bank balance sheets were clean. Citing RBI and the Economic Survey, she said, India has graduated from twin balance sheet problem of the past to twin balance sheet advantage, which has led to vibrancy in market, helping propel investments by the corporate sector and creating space for banks to lend.
She also said India will enjoy demographic dividend for the next 30 years and along with skill development, including in areas such as AI and big data etc, it will increase consumer demand. She also said India’s transition towards green energy and a sustainable future will generate new markets and demand.