Sophistication in Manufacturing and Supportive Policies Key to Growth
Finance Minister Nirmala Sitharaman spoke at the CII Annual Business Summit on Friday, highlighting that Bharat is being recognized globally as the fastest-growing economy. She also shed light on the importance of advancing sophistication in manufacturing and implementing supportive policies to sustain this growth.
Sitharaman stressed the need to bolster the manufacturing sector, which is essential for increasing Bharat’s share in the global value chain and achieving self-reliance. She noted that enhancing manufacturing capabilities is crucial for the nation’s economic progress and resilience.
VIDEO | Here's what Union Finance Minister Nirmala Sitharaman (@nsitharaman) said addressing the inauguration of the CII annual business summit 2024.
"It has always been a time when CII has always laid before itself and the nation an approach to working together with the… pic.twitter.com/CTq298UuSX
— Press Trust of India (@PTI_News) May 17, 2024
Dynamic Growth Between 2023-2028
The Finance Minister expressed optimism about Bharat’s growth prospects over the next five years. She mentioned the “twin balance sheet advantage,” which refers to the improved financial health of both corporations and banks, as a leverage point for future growth.
VIDEO | Here's what Union Finance Minister Nirmala Sitharaman (@nsitharaman) said addressing the inauguration of CII annual business summit 2024.
"2021 report of the World Economy Forum projects that 50 million net new economy jobs are going to be created in India because of… pic.twitter.com/xRL9m9jwF8
— Press Trust of India (@PTI_News) May 17, 2024
Regarding the upcoming general elections, Sitharaman confidently stated that Prime Minister Narendra Modi is expected to continue as the nation’s leader. She also revealed that the Union Budget scheduled for July this year will be a full-year budget, indicating significant planning and allocation for the nation’s future development.
Focus on Skilling and Demographic Dividend
Sitharaman emphasized the government’s efforts to ramp up skilling initiatives to harness Bharat’s demographic dividend. She mentioned that this demographic advantage, characterized by a large working-age population, will benefit Bharat for the next 30 years.
Contrary to some economists’ advice, including former RBI Governor Raghuram Rajan, who suggest focusing on the services sector, Sitharaman underscored the importance of expanding the manufacturing sector. She argued that this expansion is key to Bharat’s self-reliance and long-term economic stability.
Opportunities in the Post-Pandemic World
Sitharaman pointed out that the post-pandemic global shift towards a China-plus-one strategy provides Bharat with a unique opportunity to enhance its manufacturing capabilities. This strategy involves companies diversifying their supply chains to reduce dependence on China, and Bharat stands to benefit significantly from this trend.
Citing a report from the Capgemini Research Institute released in May, Sitharaman mentioned that Bharat has emerged as a top investment destination for European and American executives. According to the report, 65% of nearly 760 surveyed executives plan to increase their investments in Bharat, underscoring the nation’s attractiveness for foreign investors.
Finance Minister Nirmala Sitharaman’s speech at the CII Annual Business Summit painted a progressive picture of Bharat’s economic future. With a focus on manufacturing, supportive policies, and leveraging the demographic dividend, Bharat is assured and focused to continue its trajectory as the fastest growing economy.
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