“Today, I would call upon the private sector to increase their investments just like the government so that the country gets maximum benefit from it,” Modi said at a post-Budget webinar. He highlighted how the government earmarked over Rs 10 lakh crore towards public spending during the next financial year.
The PM’s comments come amid indications that private sector capex has been slow to take off as inflation and global slowdown, as well as the war in Russia, have hit demand. The government has indicated that there are signs of the private sector investing is adding to its production capacity, at least in select sectors.
During the webinar, Modi also suggested that the banking system should support expansion, while giving the example of the government’s support to the MSME sector.
“One crore and 20 lakh MSMEs have received huge help from the government during the pandemic. In this year’s Budget, the MSME sector has also got additional collateral-free guaranteed credit of Rs 2 lakh crore. Now, it is very important that our banks reach out to them and provide them adequate finance.”
He said that the banking system now stands robust after being on the verge of collapse eight-10 years ago. “Today, the need of the hour is that the benefits of the strength in India’s banking system should reach the maximum number of people,” the PM said, asking the banking system to reach out to the maximum number of sectors.
The PM also spoke about the ‘Vocal for Local’ and Atmanirbhar Bharat initiatives of the government, which he said helped in increased domestic production while leading to record growth in exports and asked companies and industry chambers to support local artisans and entrepreneurs up to the district level. “We have to see which are the areas where we can save the country’s money by building capacity in India itself,” he said. Modi also said that the world has witnessed the impact of India’s fiscal and monetary policy during the pandemic as his government also strengthened the fundamentals of the economy over the last 9 years.
He said earlier the world looked at India with suspicion, and any conversation about the country’s economy, Budget and goals would often begin and end with a question. However, he said his government drove in financial discipline, transparency and inclusive approach. “Today, India is being called the bright spot of global economy.” Modi said that today India is presiding over the G20 as it also managed to attract the highest FDI in the year 2021-22, a major part of which was towards the manufacturing sector.
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