FM to India Inc: Invest, produce more in India

NEW DELHI: Finance minister Nirmala Sitharaman on Thursday urged India Inc to invest and expand as govt has delivered on major reforms.

"Today I have a basket of things on which govt has delivered...I hope there is no more hesitation for industry to invest further to expand capacities, produce more in India and what else is required by the govt to do, spell them out," Sitharaman said in response to a question from Tata Sons chairman N Chandrasekaran.



She said govt has steadily moved as was the expectation of industry on ease of doing business, tax related benefits and wide-ranging reforms. Sitharaman said Prime Minister Narendra Modi has never relented on reforms and since his days as Gujarat chief minister never ignored the wishlist of industry and as PM has a settler record on reforms in the last 11 years.

Govt has been urging the industry to invest and build capacity against the backdrop of trade tensions and geopolitical upheaval. India Inc has pointed to the challenges on the horizon and uncertainty for the slow pace but now there are expectations that investments will gather momentum after the string of reform measures unleashed by govt, including the sharp reduction in GST rates. Sitharaman also identified the skills gaps and called on industry to deliberate on how to "bridge the human resources insufficiencies". "I would want private sector participation together with govt in readying youth to be fit for quick and direct employment. In skilling, you need to partner with the govt," said Sitharaman.

FM said the engagement of the private sector with the govt should be ongoing and it should not be just before the annual budget exercise. "Please keep it going on, We are all here to hear you and we respond, so engagement should continue," said Sitharaman listing it as one of the three things that she wants from industry.