FM Nirmala Sitharaman urges industries to join government’s attempt to boost growth

She emphasized on the take that the government has not “given up” on its investment in infrastructure and assuring constant assistance from the government to the industry.

Days after presenting a record public capital expenditure in the Union Budget FY22, Finance Minister Nirmala Sitharaman on Saturday urged the private sector to come forward with investments and unite with the actions to commence the virtuous cycle of improvement, ensuring that the government will proceed with its supportive measures going forward.

In her first conversation with India Inc after the presentation of the budget on February 1, the Finance Minister commented that public expenditure has been increased amid the pandemic also with the possibility of attracting private investments along with the main goal of benefiting the economy. “Government will be there to support, the government continues to support. Without any other expectation, the government has come forward to support,” Sitharaman announced implying to the boost in public expenditure.

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The Finance Minister said that a capital expenditure of ₹7.5 lakh crore for the next fiscal, around 35% more against the budgeted Capex of FY22. She also told that expansion of the 15% concessional tax rate till March 2024 for just incorporating manufacturing units should be one more increase for the industry to attract investments.

Emphasizing on the take that the government has not “given up” on its investment in infrastructure and assuring constant assistance from the government to the industry and the economy, Sitharaman also told that the government has a contingent strategy to deal with external factors for the economy comprising of problems such as a rate hike by the US Federal Reserve.

She also reported that the budget put focus on the whole gamut of businesses and gives relief and boost for both conventional industries and new-age commodities and called upon the business to reap benefits of the openings in sunrise and new-age sectors along with traditional businesses comprising of bulk drugs manufacturing.

However, in the context of criticism of the government over a cut in budgets for the Mahatma Gandhi National Rural Employment Guarantee Program (MGNREG), the Finance Minister was of the belief that the scheme is demand-driven and in the last two years when the necessity for employment had climbed amid the drastic waves of the pandemic, the government had increased its allocation, and whenever the necessity arises the government may again put up its allocation.