Time ripe for India to go on two-track growth path: FM Nirmala Sitharaman

Finance minister Nirmala Sitharaman on Monday said despite the pandemic, India is at a stage where it has to tread on a two-track growth path.

“One is the rail, which is going to have a multi-modal approach and guided by the spirit of PM Gati Shakti where 21st century infrastructure will be built. Understanding the length and breadth of this country, economic corridors are going to be built, logistics hubs are going to be built so that you are going to have inter-connectivity with all of them,” she said.  

The finance minister said the other track involves new opportunities such as start-ups, sunrise sectors and the transition towards clean energy for sustainable growth.

“We need to have such infrastructure in sunrise sectors, which will help us to give that traction for our aspirations. That’s the kind of new India, which is getting built up, and which looks for the government to be a facilitator rather than making our lives difficult,” the FM added.  

Sitharaman exhorted the private sector not to miss the opportunity of kickstarting its investments. This comes at a time when major economic agencies have projected India to be the world’s fastest-growing economy for the next two years.

“This is the opportune time for private investments to come in, expand your capacities, build new capacities. The corporate tax rate has been reduced much before the pandemic. I would honestly appeal to you, do not let this opportunity go away. Not just us but globally, too, the assessment by normally very discerning investors and financial sector observers is that India will be the fastest-growing economy this year and the next year. And, if India shall be the fastest-growing large economy, I am sure it will also be because you have come forward. It’s because India as a team — government and private — will have to work together. It just can’t be only the government doing it,” Sitharaman said at a post-Budget interaction with industry leaders organised by PHD Chamber of Commerce and Industry.

“This time, capex has gone up to Rs 7.5 trillion from Rs 5.5 trillion in the previous year. We are giving Rs 1 trillion to the states from this Rs 7.5 trillion as interest-free 50-year loans. State governments can have that resource in their hand through which they can speed up spending on infrastructure. So, it is an approach where the Centre and states are doing it together,” she added.