FM urges India Inc to take risks, boost capacities to create more jobs

Sitharaman said PM Modi has asked all ministers to identify compliance burdens for the industry in their respective ministries and departments, and simplify them

Prime Minister Narendra Modi has asked all ministries and departments to further simplify compliance burden for the industry, Finance Minister Nirmala Sitharaman said on Wednesday, as she exhorted India Inc to take risks and ramp up capacities to create job opportunities and cut dependence upon imports.

“I would strongly appeal to the Indian industry that you shouldn’t further delay looking at increasing capacities... looking at newer areas evolving, shouldn’t delay in finding partners who can give you such technology,” said Sitharaman at the CII Global Economic Policy Summit 2021.

The industry should be a “lot more risk-taking” and step forward to give additional impetus to India’s growth, said Sitharaman.

She also appealed to the industry to offer jobs and reduce income disparity. The industry must also emphasise on cutting down import of finished goods and focus on ramping up investment in manufacturing, she said in her address.

Sitharaman said Prime Minister Modi has asked all ministers to identify compliance burdens for the industry in their respective ministries and departments, and simplify them.

The government’s intention is to remove obstacles, and it won’t stop at doing away with just 1,500 archaic laws, she said. 

Sitharaman also said the banking sector has “remarkably” turned around, and non-performing assets have started declining, along with higher recoveries. She added that public sector banks have raised Rs 10,000 crore from the market, and are not looking at the government to fund them.

In the three-week run-up to Diwali, banks have collectively lent Rs 75,000 crore to four to five different categories through the credit outreach programme, she said.

“India has shown the world it is possible for a developing country to quickly recover and grow at near double-digit (rate),” she said.

India is moving towards solar and renewable sources of energy, and this target can be achieved only if all stakeholders are committed towards meeting this goal. Even as there is no additional demand, India’s fossil fuel bills are going up since crude oil prices have increased substantially, she said. There are no convincing signs visible that prices will fall, she added.