Private sector should increase investments, benefit from Budget: Modi

Trust and expectation have replaced doubt in discussions about Indian economy, he says

India’s private companies should increase investments and use opportunities announced in Budget 2023-24, said Prime Minister Narendra Modi on Tuesday.

The private sector helps in the development of the country and the government will support it, he said, referring to the Budget increasing the capital expenditure outlay by 33 per cent to Rs 10 trillion.

The time has ended when the world doubted India’s capability and economic goals, he said at a post-budget webinar on ‘Enhancing Efficiency of the Financial Services for Creating Growth Opportunities’.

“With India guided by financial discipline, transparency and inclusive approach, the question mark at the beginning and end of the discussion has been replaced by ‘vishwas’ (trust) and ‘apeksha’ (expectations),” he said at the webinar, the tenth in a 12-part series seeking ideas and suggestions for implementing the Budget.

The responsibility of India’s financial sector to have robust systems has increased. “The need of the hour is that the benefits of the strength in India's banking system should reach the maximum number of people and it is very important that our banks reach out to MSMEs and provide them adequate finance.”

Modi asked business chambers and industry to promote artisans and entrepreneurs in India’s districts. The government’s ‘Vocal for Local’ campaign is bigger than just buying homemade products. India has to save money by building domestic capacity in sectors where it goes out, citing higher education and edible oil as examples.

“Paying tax is such a duty, which is directly related to nation building. The increase in the tax base is proof that people have faith in the government, and they believe that the tax paid is being spent for the public good.”

“RuPay and UPI are not just a low cost and highly secure technology, but it is our identity in the world. There is immense scope for innovation. UPI should become a means of financial inclusion and empowerment for the whole world, we have to collectively work for it. I suggest that our financial institutions should also have maximum partnership with fintechs to increase their reach,” said Modi, referring to domestic debit cards and state-backed unified payments interface.