Finance Minister Nirmala Sitharaman urges greater investment in manufacturing at CII Annual Summit

Finance Minister Nirmala Sitharaman has advocated for a greater emphasis on the manufacturing sector during her speech at the CII Annual Business Summit 2024 held in Delhi on Friday. Sitharaman highlighted the importance of manufacturing alongside services and underscored the need for increased investment and governmental backing to strengthen this sector.

“Manufacturing must increase, India must also increase manufacturing with the help of policies, its share in manufacturing in global value chains. So we need to have greater sophistication in our product manufacturing, and we also need to see how this can be given the best policy support,” said the Union Minister, as quoted by ANI.

During the event, Sitharaman highlighted an IMF report that predicted that India’s contribution to global growth would be 18 percent over the next five years, starting in 2023. She said that the period from 2023 to 2028 would be dynamic for India’s growth.

“IMF estimates that India’s contribution to the global growth for five years, beginning 2023, will be 18 percent. “So between 2023 and 2028, we are looking at an India which will be dynamic, contributing to 18 per cent to the global growth,” said the minister.

Sitharaman also cited the S&P Global Market Intelligence outlook, which projects significant growth in India’s consumer market.

“The Indian consumer market is likely to double by 2031, there is a 2.9 trillion-dollar opportunity in that. The report also suggests that consumer spending on food in India is estimated to rise to 1.4 trillion US dollars; again, a one trillion-dollar opportunity lies in waiting,” the minister added.

Furthermore, she highlighted opportunities in India’s financial market, quoting the S&P report.

“Spending on financial services will climb to 670 billion US dollars, there is a 390 billion-dollar opportunity waiting for us. These are the opportunities that are untapped until now,” said the minister.

Sitharaman also mentioned projections from the World Economic Forum regarding job creation and the economic impact of green energy.

“WEF projects 50 million net economic jobs are going to be created in India from green energy and 1 trillion economic impact by the year 2030. Solar energy has itself shown the extent to which job creation policy exists,” said the minister.

Highlighting improvements in India’s financial sector, she pointed out the government’s resolution of the twin balance sheet problem, where both banks and corporates were affected by rising NPAs and non-payment of dues.

“RBI and government survey report said from those twin balance sheet problems of 2013-14, today it is twin balance sheet advantage situation. So both corporate and financial sector balance sheets have not just turned around but are in pink to help,” said Sitharaman.

She added, “The twin balance sheet advantage is there for both the opportunity and confidence elements that this situation gives us.”

The CII conference fosters discussions across six tracks: Growth and Development, Green Economy, India and the World, Advanced Technology and Innovation, Employment and Livelihood, Startups, and New Age Businesses.

The CII Annual Business Summit is a two-day event being held in Delhi on May 17-18.

(With Inputs from ANI)

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Published: 17 May 2024, 01:21 PM IST