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Monday 6 July 2020

Sitharaman admits govt spending alone won’t revive economy

'We have done whatever we can, we are not closing the doors; we are still ready to do much more, but I want it to be meaningful: Sitharaman,' the finance minister said

While the Narendra Modi government has been pumping taxpayers’ money into the market for more than five years now, Finance Minister Nirmala Sitharaman today admitted that the formula of yesteryears’ economist John Maynard Keynes does not always work. She did not name the economist, though.

As the government is constantly making efforts to emerge from the slowdown, the finance minister said that today economic growth cannot be accelerated only by government spending. Sitharaman said that the industry must stop hesitating. There is a need to invest to accelerate the economic growth of the country, she said.

During a post-budget discussion in the Confederation of Indian Industry (CII), the finance minister said that the government would work to make the path of industry easier and all problems would be removed.

“I strongly believe that industry today will have to come out of that hesitation which…you have in your mind, but I think it’s now time to come out of that hesitation. We have done whatever we can, we are not closing the doors; we are still ready to do much more, but I want it to be meaningful intervention from the government rather than rushed,” the minister said.

In a round of discussion on “Assembly in India”, Sitharaman said assembling is for capacity building. “But this does not mean that ‘Make in India’ is no longer our priority,” she said.

Sitharaman said that a group comprising experts in economic affairs, expenditure, revenue, DIPAM, and banking would accompany her in the next few days to three cities, Mumbai, Chennai and Kolkata, to interact with the industry, economists, trade bodies, traders, farmers and farmers’ groups.

The recently presented Economic Survey mentions “Assemble in India for the World”. It suggested that India’s export market share may increase by about 3.5% by 2025 and by 6% by 2030 by linking “Assemble in India for the World” to ‘Make in India’.

The survey said that, by 2025, India would be able to generate about 4 crore jobs with good pay and by 2030 about 8 crore jobs. By 2025, about one-fourth of the money needed to make India a US $ 5 trillion economy will be realised.

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