India as fastest growing economy recognised by global observers: Nirmala Sitharaman

FM on India Economy: Finance Minister Nirmala Sitharaman on Friday said India as the fastest growing economy was being recognised by global observers. Speaking at the CII Annual Business Summit, the Finance Minister stressed the importance of sophistication in manufacturing and supportive policies. She said there was a strong need to strengthen the manufacturing sector to enhance its share in the global value chain and achieve self-reliance.

“We are looking at a very dynamic India between 2023-28. The twin balance sheet advantage is there for us to leverage upon,” said Sitharaman. Commenting on the possible outcome of the general elections, Sitharaman said Prime Minister Narendra Modi will certainly continue to be the PM of the country. Sitharaman said the Union Budget slated for July this year will be a full year Budget.

“PM Modi is coming back with the good majority and July Budget will be a full year Budget. India story is a compelling growth story,” Sitharaman added. She said skilling was being ramped up to take advantage of the demographic dividend, adding that window of demographic dividend advantage for India will remain for the next 30 years.

Sitharaman stressed the importance of sophistication in manufacturing and supportive policies.

“Contrary to the advice of some economists, India should focus on ramping up manufacturing. Enhancing our manufacturing sector is crucial to increasing our share in the global value chain,” Sitharaman said.

Despite opinions from economists like former RBI Governor Raghuram Rajan suggesting a shift towards the services sector, Sitharaman highlighted that manufacturing expansion is key to India’s self-reliance. She said that post-pandemic, the world’s shift towards a China-plus-one strategy offers India an opportunity to boost its manufacturing capabilities.

The Finance Minister referred to a report from Capgemini Research Institute report released in May, adding that India was a top investment destination for European and American executives seeking to reduce dependence on China. This report had stated that 65 per cent of nearly 760 surveyed executives plan to increase investments in India.

(With PTI inputs)