FM Nirmala Sitharaman to meet with CMs and State FMs on Monday
Union Finance Minister Nirmala Sitharaman will meet with chief ministers and state finance ministers on Monday to discuss measures to attract private investment to help stimulate the economy.
Finance Secretary TV Somanathan said the meeting comes against the backdrop of a strong economic recovery from the two waves of COVID, and that the central government has made a big push on investment.
This interaction will focus on issues, opportunities and challenges at the state level, which will allow us to move towards a higher investment and growth trajectory, he said.
âThere is capital spending on the government side, and there is a positive sentiment on the private sector side, although perhaps not fully translated into real large-scale investment. (However) capital market activity indicates that a lot of investment is likely on the cards.
âThis positive sentiment is something the government believes should be capitalized on in order to move India forward to a higher and more sustainable growth path. This is an opportunity, an opportunity that we must not pass up, âsaid Somanathan.
The secretary briefed reporters on Sitharaman’s virtual meeting with chief state ministers and finance ministers on November 15.
He said that global geopolitical developments give India a certain advantageous position and therefore India is becoming, in relative terms, a more attractive destination for investment, both domestic and overseas.
âSo in order to bring India to higher growth, there are steps to be taken by the private sector, and there are policy steps to be taken by the government. Some of the actions lie with the central government, and the central government has made efforts to do what is necessary. But, many of the things that are needed to push India on a path of sustainable and higher growth lie with the states, âhe said.
The aim is to use this current conjuncture not only to stimulate growth through central policies, but also to lead states, he said, adding that the focus of the meeting would be the economic impulses of states. and not state revenues.
Economic Affairs Secretary Ajay Seth said discussion during the meeting will focus on state-level issues, such as land, water, availability of electricity and how policies can be relaxed to attract investment.
In a statement, the finance ministry said growth had slowed in the COVID-19 pandemic. However, after the first quarter of the current fiscal year, the economy picked up, with green shoots of recovery clearly visible.
The Indian economy contracted by 7.3% in the last fiscal year after growing 4% in 2019-2020.
In the April-June quarter of the current fiscal year, the economy grew 20.1 percent.
Several economic indicators are now at pre-pandemic levels. IMF and World Bank projections set India’s GDP growth at around 9.5% and 8.3%, respectively, as one of the fastest growing economies.
âAlthough investor sentiment is good, it is necessary to capitalize on the momentum already created. The first four months of fiscal year 2021-22 have already recorded inflows of $ 64 billion in foreign direct investment (FDI), âthe statement said.
The interaction will attempt to create a political discourse and an environment conducive to growth driven by foreign investment.
“This will be made possible by a proactive approach to investment promotion, the efficiency gains brought about by the ease of doing business reforms, and the focus on accelerating approvals and clearances down to the level of companies. local urban organizations (ULB) “, he added.
Through the interaction, states would share their ideas and vision for improving the investment climate, leading to a broad consensus on the path for India to become the fastest growing economy.