Our policies aim to attract manufacturers to India: FM Nirmala Sitharaman

Apr20,2024



Ahmedabad: Union Finance Minister Nirmala Sitharaman Saturday said the Center has formulated policies to make India an attractive destination for manufacturing and services, and aims to produce not only for the domestic market but also for exports. She was replying to a question on American tech billionaire Elon Musk postponing his meeting with Prime Minister Narendra Modi.
“Policies have been made attract investment, We want manufacturers and investors to come and produce not only for India but also for export. We will try to attract manufacturers and investors through policies, he told reporters.
Tesla CEO Musk said on Saturday that his visit to India has been delayed due to the company's heavy obligations.
“When big companies show interest in coming to India, we will do everything to make it attractive for them to come here and invest. In that process, if there is anything to discuss, we will definitely discuss. But Whatever we've done, we've done.” Did it through policy,” Sitharaman said.
Emphasizing that the central government's approach has helped especially after China Plus One became a matter of concern for many industry experts, he said the policies have been designed in a way to help India in manufacturing. And to create an attractive destination for services.
Speaking about inflation, he said that except for one month under the Narendra Modi government, it never crossed the tolerance limit, whereas before that (before 2014) the economy was in a bad shape and inflation was in double digits. . “At that time (before 2014), no one had any expectations from the country. After a lot of hard work, we have emerged as the fifth largest economy in the world and are confidently saying that in the next two to two and a half years we will reach the third position. But there will be.” The Union Minister said.
On employment, Sitharaman said there was a lack of complete data from both the formal and informal sectors, but the Centre's initiatives have ensured employment to lakhs of people. “The data is inadequate. I am not saying this to boast but to admit its weakness. All I can say about employment is that the money that has been given to people and startups through various schemes…crores of people Has received support. Modi has given government jobs to 10 lakh people between October 2022 and November 2023.
Asked about the rule that requires large companies to make payments to micro, small and medium enterprises (MSMEs) within 45 days of receiving goods or services, Sitharaman said this law was enacted in 2007-08. It has been in existence since and it is not new. “Later the MSMEs themselves came and said that the 45-day payment is not being made within that financial year. But within that financial year, this amount is shown as expenditure and tax is not being paid to that extent. We have done all this through the Finance Act which was passed in Parliament on February 1, 2023. “We just said that the tax treatment will remain the same. Claim in the year you make payment to MSME. How can you claim when you have not paid?” he asked.
Asked about the weakening of the Indian rupee against the US dollar, he said the fluctuation was due to global uncertainty, wars as well as uncertainty in crude oil supplies from the Middle East.
Earlier, while addressing the industry leaders of Gujarat on 'Developed India-2047', he said that 28 per cent of the total capital has come to the state under the Production Linked Incentive (PLI) scheme, which has helped in the last 10-12 years. Has shown remarkable alertness. Therefore, semiconductor manufacturing for India comes to Gujarat in the first place, where the policy as well as the government and ecosystem are ready to build a developed India 2047, he said.
“The IFSC at GIFT City in Gandhinagar is a great gateway for the growth of services in Gujarat. A world-class financial services center very close to Ahmedabad will provide access to that kind of global market to attract more investments and more financial The key is operations,” Sitharaman said, adding that Gujarat ranks third in attracting FDI.



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