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Business News/ News / India/  FM asks corporates to 'join in a big way' to push up India's growth trajectory
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FM asks corporates to 'join in a big way' to push up India's growth trajectory

Next-generation reforms on top of the government's agenda if voted for a third term

Finance minister Nirmala Sitharaman on Tuesday said it is time for Indian industry to look for bigger joint ventures around the world. (PTI)Premium
Finance minister Nirmala Sitharaman on Tuesday said it is time for Indian industry to look for bigger joint ventures around the world. (PTI)

NEW DELHI : Finance minister Nirmala Sitharaman on Tuesday asked Indian corporates to “join in a big way" to push up India's growth trajectory, especially at a time when the country is aiming to become a developed nation by 2047.

Speaking at the FICCI's National Conclave on ‘Viksit Bharat @ 2047: Viksit Bharat and Industry', Sitharaman said it is time for the Indian industry to look for greater joint ventures around the world in technology and other sectors, even as more foreign investments come into the country.

"If global investments are coming in, that's because they see prospects here," she added.

The government has stepped up its capex budget in recent years to try and improve India’s creaking infrastructure, create jobs and accelerate economic growth.

The Centr's capital expenditure on infrastructure projects was raised to 11.11 trillion for the financial year starting 1 April 2024.

However, private investments, although increasing, haven't taken off in a big way yet.

Some of the key reasons for this are high interest rates, excess capacity in some sectors, impending elections and low consumer demand in rural areas.

Sitharaman said if the government is voted to power for its third term in the upcoming general elections, the Indian economy will rank among the top three global economies.

"Since 2014, we have lifted the Indian economy from the 10th place where it was, to fifth place, where is it today. The PM will ensure India will be lifted to the third place during his third term," Sitharaman said.

"Thereafter, we will have to do a lot of things to reach the top, and next-generation reforms will be on top of the agenda," she added.

Since 2014, various steps have been taken to improve the ease of doing business in terms of due diligence, compliances, and ease of living, and the trend is going to continue, Sitharaman said.

The next generation of reforms will spur inclusive growth, with a push on digital infrastructure, space, artificial intelligence, logistics, tourism and agricultural value addition for better productivity and efficiency, she added.

As things stand, India’s economy is performing well, with risks evenly balanced, to achieve 7% growth in FY25, but geopolitical tensions and geo-economic fragmentation pose a risk to growth.

The Reserve Bank of India has projected a real GDP growth of 7% for FY25, up from its previous forecast of 6.6%, which would make India the fastest-growing major economy.

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ABOUT THE AUTHOR
Rhik Kundu
Rhik writes about the Indian economy and its crucial indicators. He is constantly navigating corporates, decoding policies, and dabbling with everything in between.
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Published: 27 Feb 2024, 05:48 PM IST
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