PremiumFinance Minister Sitharaman asked the private sector to come forward with investments and join the efforts to kickstart the virtuous cycle of growth, assuring that the government will continue its supportive measures going ahead
| Listen to this article |
NEW DELHI : Days after announcing a record public capital expenditure in the Union Budget FY23, Finance Minister Nirmala Sitharaman on Saturday asked the private sector to come forward with investments and join the efforts to kickstart the virtuous cycle of growth, assuring that the government will continue its supportive measures going ahead.
In her first interaction with India Inc since the presentation of budget on February 1, the Finance Minister noted public expenditure has been raised amid the pandemic also with the hope of attracting private investments along with the primary motive of supporting the economy.
"Government will be there to support, government continues to support. Without any other expectation government has come forward to support," Sitharaman said referring to the increase in public expenditure.
The Finance Minister announced a capital expenditure of ₹7.5 lakh crore for the next fiscal, around 35% higher than the budgeted capex of FY22.
She also said that extension of the 15% concessional tax rate till March 2024 for newly incorporate manufacturing units should be another boost for the industry to ramp up investments.
Stressing that the government has not "given up" on its investment in infrastructure, the minister said: "I would call upon the industry to ensure that we don't miss this opportunity for India to reach a higher level of industrialisation, manufacturing in India...and the gobal arena which is getting open now where global value chains are not going to be concentrated in one geography. They are looking for familiar, law abiding, possibly English-speaking jurisdictions and India fits into that very well."
Assuring of continued support from the government to the industry and the economy, Sitharaman also said that the government has a contingency plan to handle external factor for the economy including issues such as a rate hike by the US Federal Reserve.
"We certainly have a contingency plan. But I have not really expanded on that in the budget. As a responsible government, we do have a contingency plan of some kind, which of course keeps evolving with the global changes. We shall definitely be happy to engage with the industry," she said referring to an expected Fed rate hike.
She also noted that the budget laid stress on the whole gamut of businesses and provides relief and boost for both conventional businesses and new-age entities and called upon the industry to reap benefits of the opportunities in sunrise and new age sectors along with traditional businesses including bulk drugs manufacturing.
On a request for rationalisation of the goods and services tax for restaurants, the Finance Minister noted that it comes under the domain of the GST Council. Assuring that Centre would include the matter in the council's agenda, she said: " We will take it up".
Regarding criticism of the government over a cut in funds for the Mahatma Gandhi National Rural Employment Guarantee Program (MGNREG), the Finance Minister was of the view that the scheme is a demand-driven scheme and in the past two years when the need for employment had gone up amid the severe waves of the pandemic, the government had raised its allocation, and whenever the need arises the government may again raise its allocation.
On a question of the likely timeline for privatisation of public sector banks as announced in the last year's budget, she said that a timeline cannot be given right now, but the government's intent towards privatisation remains intact.
Responding to a question on the contentious norm formulated by SEBI to separate the roles of Chairman and MD, the Finance Minister said if Indian businesses have issues with the new regulation, the securities market regulator should talk to the industry and hear them out.
She, however, said that many companies have complied to the norm which is due to come into effect from April this year, adding that: "This doesn't mean others also should (follow the norm)."
Never miss a story! Stay connected and informed with Mint. Download our App Now!!