New Delhi: Union Finance Minister Nirmala Sitharaman emphasized the government’s efforts to enhance India’s appeal for both manufacturing and service sectors, aiming not only at catering to the domestic market but also fostering exports. In response to inquiries regarding Elon Musk’s postponed meeting with Prime Minister Narendra Modi, Sitharaman highlighted the implementation of policies designed to attract investments, encouraging manufacturers and investors to consider India as a lucrative destination. She underlined the government’s proactive stance, particularly in light of concerns about diversifying from China, by tailoring policies to make India an attractive hub for manufacturing and services.
Regarding inflation, Sitharaman noted the government’s success in maintaining it within acceptable limits, with only occasional breaches, contrasting it with the double-digit inflation rates prevalent before 2014. She expressed confidence in India’s economic trajectory, foreseeing its rise to the third-largest economy in the coming years. On the topic of employment, while acknowledging the lack of comprehensive data, she cited various initiatives supporting both formal and informal sectors, including government jobs provided through schemes like Rozgar Mela.
Sitharaman addressed concerns about payment delays to Micro, Small, and Medium Enterprises (MSMEs), explaining the tax-related amendments passed in the Finance Act of 2023 to ensure timely payments. She attributed the fluctuation of the Indian rupee against the US dollar to global factors such as uncertainty and geopolitical tensions.
In a separate address to industry leaders in Gujarat, Sitharaman praised the state’s proactive role in attracting investments, particularly highlighting its success in securing a significant portion of capital under the Production Linked Incentive (PLI) scheme. She emphasized Gujarat’s potential as a hub for semiconductor manufacturing and financial services, citing initiatives such as the International Financial Services Centre (IFSC) in Gandhinagar as key drivers for attracting investments and facilitating financial operations. Additionally, she commended Gujarat’s position as a leading state in attracting Foreign Direct Investment (FDI) in manufacturing.
