What's Stopping India Inc To Invest In Manufacturing Sector: Nirmala Sitharaman Asks Industry

Nirmala Sitharaman, while drawing parallel between India Inc and mythological character 'Hanuman', said the central government is willing to engage with the industry and take policy action

Finance Minister Nirmala Sitharaman on Tuesday sought to know from India Inc what is stopping it from investing in manufacturing sector, even though foreign investors show confidence in India, the PTI reported.

According to the report, Sitharaman, while drawing parallel between India Inc and mythological character 'Hanuman', said the central government is willing to engage with the industry and take policy action. "This is the time for India… We cannot miss the bus," she said.

The finance minister said the government has brought in production linked incentive (PLI) scheme, cut tax rates to encourage the domestic industry to invest in manufacturing. "No policy can be end in itself.. it keeps evolving as we go on. That applies even to industries that have come in the sunrise sector for which we have given policy support through an incentive. I would equally want to know from the Indian industry why is it that they are hesitant (to invest)…. We will do everything to get the industry come and invest here..(but) I want to hear from India Inc what's stopping you?," she said.

Speaking at the Mindmine Summit, the minister said countries and industries abroad think India is the place to be in now and this is reflected in FDI and FPI inflows and confidence among stock market investors.

“Is it like Hanuman? You don't believe in your own capacity, in your own strength and there got to be someone standing next to you and say you are Hanuman, do it? Who is that person going to tell Hanuman? It can't certainly be the government," Sitharaman added. 

Last week, Sitharaman said that the government is committed to its intent to divest state-owned enterprises and push banking sector reforms. She mentioned that windfall tax on petroleum products, crude oil is not ad hoc, but being charged in regular consultation with the industry. 

The government will go ahead with the banking sector reforms. The initial public offering (IPO) of Life Insurance Corporation of India has shown that the government is committed to the process of disinvestment, she added.