Finance Minister Nirmala Sitharaman called for increased focus on the manufacturing sector. During her address at the CII Annual Business Summit 2024 in Delhi, Sitharaman emphasized the significance of manufacturing alongside services. She stressed the necessity for heightened investment and government support to bolster the manufacturing sector.
“Manufacturing must increase, India must also increase manufacturing with the help of policies, its share in manufacturing in global value chains. So we need to have greater sophistication in our product manufacturing and we also need to see how this can be given the best policy support” said the minister
At the event, the minister emphasized the findings of the IMF report, stating that India is projected to contribute 18 percent to global growth from 2023 to 2028. She highlighted the dynamic growth prospects for India during this period, indicating significant opportunities ahead.
“IMF estimated that India’s contribution to the global growth for five years beginning 2023, will be 18 per cent, So between 2023 and 2028 we are looking at an India which will be dynamic contributing to 18 per cent to the global growth,” said the minister.
Additionally, the minister underscored India’s compelling growth narrative, referencing insights from S&P Global Market Intelligence. She elaborated on the expanding consumer market within India, emphasizing its significance in the country’s growth trajectory.
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“The Indian consumer market is likely to double by 2031, there is 2.9 trillion-dollar opportunity in that. The report also suggests that consumer spending on food in India is estimated to rise to 1.4 trillion US dollars, again one trillion dollar opportunity lies in waiting” the minister added.
Quoting the S&P report the minister further adds that the opportunities in India’s financial market is great too “Spending on financial services will climb to 670 billion us dollars, there is 390 billion opportunity waiting for us. These are the opportunities that are untapped till now”
Sitharaman stated that as per projections from the World Economic Forum, the green energy sector in India is expected to generate 50 million net jobs and contribute USD 1 trillion to the country’s economy.
“WEF projects 50 million net economy jobs are going to be created in India from green energy and 1 trillion economic impact by the year 2030. The solar energy has itself shown the extent to which job creation policy exists” said the minister
The minister highlighted the progress in India’s financial sector, noting the government’s resolution of the twin balance sheet problem. This issue pertained to the impact on both bank and corporate balance sheets due to escalating NPAs and unpaid dues.
She said “RBI and government survey report said from those twin balance sheet problems of 2013-14 today it is twin balance sheet advantage situation. So both corporate and financial sector balance sheets have not just turned around but are in pink to help.”
She added that the “twin balance sheet advantage is there for both the opportunity and confidence element that this situation gives us.”
The CII conference initiates discussions across six tracks, encompassing Growth and Development, Green Economy, India and the World, Advanced Technology and Innovation, Employment and Livelihood, and Startups and New Age Businesses. Scheduled for May 17-18, the CII Annual Business Summit in Delhi spans two days.
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