Finance Minister Nirmala Sitharaman emphasized the need for Indian corporates to play a significant role in driving India’s growth trajectory towards becoming a developed nation by 2047. Speaking at the FICCI’s National Conclave on ‘Viksit Bharat @ 2047: Viksit Bharat and Industry’, Sitharaman urged Indian industries to explore greater joint ventures globally, particularly in technology and other sectors, to complement the influx of foreign investments into the country.
Sitharaman highlighted the substantial increase in the government’s capital expenditure (capex) budget in recent years, aimed at enhancing India’s infrastructure, generating employment, and accelerating economic growth. The capital expenditure on infrastructure projects for the upcoming financial year stands at ₹11.11 trillion, reflecting the government’s commitment to bolstering infrastructure development.
Despite these efforts, Sitharaman acknowledged that private investments have not surged significantly due to factors such as high interest rates, excess capacity in certain sectors, forthcoming elections, and subdued consumer demand in rural areas. However, she expressed confidence that with the continuation of the government’s policies, India’s economy could ascend to become one of the top three global economies if the government secures a third term in the upcoming general elections.
Nirmala Sitharaman highlighted the significant progress made in improving the ease of doing business since 2014, with reforms focused on simplifying due diligence procedures, enhancing compliance mechanisms, and promoting ease of living. She emphasized that the next phase of reforms would prioritize inclusive growth, with a particular emphasis on digital infrastructure, space technology, artificial intelligence, logistics, tourism, and agricultural value addition to boost productivity and efficiency across various sectors.
The Finance Minister underscored the favorable outlook for India’s economy, with balanced risks, projecting a growth rate of 7% for FY25. However, she cautioned that geopolitical tensions and geo-economic fragmentation could pose challenges to sustained growth.
Sitharaman’s remarks align with the Reserve Bank of India’s projection of a 7% real GDP growth for FY25, positioning India as the fastest-growing major economy. The government’s focus on fostering a conducive environment for investment and implementing structural reforms bodes well for India’s economic prospects in the coming years.