Nudging India Inc to step up on private capex, Finance Minister Nirmala Sitharaman urged industry to 'spell out' their requirements and asked if there are 'no more hesitations' to invest more and add capacities.
Speaking at the Indian Foundation for Quality Management (IFQM) Symposium on September 18 in New Delhi, FM Sitharaman, during a conversation with Tata Sons' N Chandrasekaran, listed out three areas where the government would like industry to focus, namely investment, skilling, and feedback.
Private Capex
"I hope there is no more hesitation for industry to invest further, expand capacities, produce more in India. What else is required by the government, spell them out," FM Sitharaman said at the event. "You have a Prime Minister in this country who you have known for decades from his days as the Chief Minister of Gujarat, and he has never relented on reforms, nor has he ignored the wishlist of the industry."
Finance Minister added that the government has been steadily moving forward, as was the expectation of the industry, and has a basket of things on which it has delivered.
At a time of global economic headwinds, India’s growth has been steady, supported by strong domestic demand, and a benign inflation. Despite recent setbacks like the Trump tariffs and supply chain bottlenecks, S&P Global has said India's longer term outlook remains intact. The finance minister encouraged the industry to produce more in India and the government will help with measures that will support with demand growth.
"...I understand your requirement would be - I want that demand to be visible on the horizon, then I will come in. The horizon keeps shifting because of the global challenges, I understand, but that is one thing the industry should very quickly look at..," the finance minister said.
Industry participants and economists are hopeful that the recent GST rate reforms, coupled with RBI rate cuts since the start of the year and the income tax sops announced during the Union Budget will together support demand growth.
Human Resource Upskilling
FM Sitharaman also pointed at the need to urgently upskill India's youth to make them for 'quick and direct' employment, after completing their education, and sought private sector's participation in it.
"How to bridge the human resource insufficiencies - not adequately trained, not the kind of degree I want. The rounding off of the personalities is missing. The degree is there but the individual is not groomed adequately enough to be a part of the large multinationals or Indian companies that you are talking about. That element has to be done by all of us. I would want private sector participation together with the government in readying youth to be fit for quick and direct employment," said Nirmala Sitharaman.
Continuous Feedback
The finance minister also urged industry to engage with government on an 'ongoing basis', and not just before Budget. "Please keep it going on, we will respond...," said FM Sitharaman.
The IFQM is led by a Governing Council of industry captains. This year's symposium is convening government leaders, global experts, industry champions, and academia to discuss the positioning India as a world-class player in global value chains.
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