Finance Minister calls for more incentives and investment in manufacturing sector at CII annual summit

Finance Minister Nirmala Sitharaman asked for more promotion of the manufacturing sector. Speaking at the CII Annual Business Summit 2024 in Delhi on Friday, Sitharaman said many people suggest that India has a huge opportunity in services, but we cannot ignore manufacturing and need to boost it with more investment and government policies. Must be carried forward with help.

“Manufacturing should increase, India should also increase manufacturing with the help of policies, increase its share in manufacturing in global value chains. So we need more sophistication in our product formulation and we also have to look at how best policy support can be given to it” the minister said.

During the programme, the minister highlighted the IMF report which states that India’s contribution to global growth will be 18 per cent in the next five years starting 2023. The Minister also shared that the year 2023 to 2028 will be very dynamic for India’s development.

“The IMF estimates that India’s contribution to global growth will be 18 per cent for the five years starting 2023, so between 2023 and 2028 we are looking at an India that will contribute 18 per cent to global growth.” Minister.

The Minister also highlighted that India’s growth story is a compelling growth story, cited the S&P Global Market Intelligence outlook and shared about the growing consumer market in India.

“The Indian consumer market is expected to double by 2031, offering a $2.9 trillion-dollar opportunity. The report also shows that consumer spending on food in India is estimated to grow to US$1.4 trillion, again a trillion dollar opportunity lies in wait” the minister said.

Citing the S&P report, the minister further says that the opportunities in India’s financial market are also very good. “Spending on financial services will increase to US$670 billion, 390 billion opportunities await us. “These are untapped opportunities.”

Sitharaman said that according to World Economic Forum estimates, green energy in India will create 50 million net jobs and contribute US$ 1 trillion to the country’s economy.

“WEF estimates that green energy and its economic impact of Rs 1 trillion will create 50 million net economy jobs in India by 2030. Solar power itself has shown the extent to which the job creation policy exists,” the minister said.

Highlighting reforms in India’s financial sector, the Minister pointed to the government’s resolution of the dual balance sheet problem in India, where the balance sheets of both banks and corporates were hit due to rising NPAs and non-payment of dues.

He said, “The RBI and government survey reports say that those dual balance sheet problems of 2013-14 have led to this dual balance sheet profit situation today. So the balance sheets of both the corporate and financial sectors have not only turned around, but are helpfully in the pink.

“The benefit of the dual balance sheet is both the opportunity and the confidence element that this situation gives us,” he said.

The CII conference catalyzes dialogue on 6 tracks which include 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 summit in Delhi on 17-18 May.