Govt Plans To Transform India Into A Premier Destination For Manufacturing And Services: FM

FM attributed the fluctuations in the Indian rupee against the US dollar to global uncertainties, geopolitical conflicts, and instability in the supply of crude oil from the Middle East

Finance Minister Nirmala Sitharaman

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Union Finance Minister Nirmala Sitharaman remarked on Saturday that the Centre has worked on policies to enhance India's status as a manufacturing and services industry destination. The objective is not solely to cater to the domestic market but also to bolster exports. Her remarks came in response to a question regarding American tech billionaire Elon Musk's decision to postpone his meeting with Prime Minister Narendra Modi.

"Policies have been made to attract investments. We want manufacturers and investors to come and produce not just for India but also for exports. We will try to attract manufacturers and investors through policies," Sitharaman told the news agency PTI.

On Saturday, Tesla CEO Elon Musk announced that his visit to India has been postponed owing to the company's significant commitments.

"When big companies show interest to come to India, we will do everything to make it attractive for them to come and invest. In that process, if there is anything to discuss, we will certainly discuss. But whatever we have done, we have done it through policy," FM added.

Highlighting the effectiveness of the Union government's strategy, particularly amidst concerns among industry experts about the "China plus one" approach, she emphasised that policies have been meticulously designed to position India as an appealing hub for both manufacturing and services.

Discussing inflation, she pointed out that, under the Narendra Modi government, inflation remained within the tolerance band, with only one exception. In contrast, before 2014, the economy faced significant challenges, with inflation reaching double digits.

"At that time (pre 2014), nobody had any expectations from the country. After much hard work, we have emerged as the world's fifth largest economy and are confidently saying we will be third in the next two to two-and-half years," she said.

"The data is inadequate. I am not saying this pride but while accepting its weakness. All I can say regarding employment is that the money given to people and startups through different schemes...people in crores have availed support. Between October 2022 and November 2023, through the Rozgar Mela, Modi has given government jobs to 10 lakh people," she added.

In response to inquiries regarding the regulation mandating larger companies to settle payments to Micro, Small, and Medium Enterprises (MSMEs) within 45 days of receiving goods or services, Sitharaman clarified that the law has been in effect since 2007-08 and is not a recent enactment.

"Later MSMEs themselves came and said the 45-day payment is not happening within that financial year. But within that financial year, this amount is shown as expenditure, and to that extent tax is not being paid. All that we have done through the Finance Act that was passed in Parliament on February 1, 2023.”

Responding to questions regarding the depreciation of the Indian rupee against the US dollar, she attributed the fluctuations to global uncertainties, geopolitical conflicts, and instability in the supply of crude oil from the Middle East.