Finance Minister Nirmala Sitharaman emphasized the need for a stronger focus on the manufacturing sector. Speaking at the CII Annual Business Summit 2024 in Delhi, Sitharaman acknowledged that while many advocate for India’s potential in services, manufacturing cannot be overlooked and requires increased investment and government support.
The minister emphasised that sophisticated product production is essential, and that strong policy support is required. “Manufacturing must expand, and India must enhance its role in global manufacturing value chains through effective policies and investment,” She said.
At the function, Sitharaman read aloud from an IMF analysis projecting that, beginning in 2023, India would contribute 18% of global growth over the following five years. She emphasised that India’s growth is most active between 2023 and 2028.
“For the five years beginning in 2023, India is expected to provide 18% of global growth, according to IMF predictions. Thus, we anticipate a dynamic India making a big contribution to global economy between 2023 and 2028,” the minister said.
Sitharaman also emphasised the remarkable growth story of India, using data from S&P Global Market Intelligence regarding the country’s expanding consumer market.
There is a $2.9 trillion opportunity as the Indian consumer market is expected to treble by 2031. It is anticipated that food expenditures by Indian consumers will amount to $1.4 trillion, with a further trillion-dollar potential,” the speaker stated.
Quoting the S&P report, the minister highlighted significant opportunities in India’s financial market as well. “Spending on financial services is predicted to reach $670 billion, with a $390 billion untapped opportunity,” she noted.
Sitharaman also shared projections from the World Economic Forum indicating the creation of 50 million net jobs in India from green energy, contributing $1 trillion to the economy by 2030.
“The WEF projects that 50 million net jobs will be created in India from green energy, with a $1 trillion economic impact by 2030. Solar energy alone exemplifies the potential for job creation,” she stated.
While talking about reforms to India’s financial sector, Sitharaman emphasised the answer to the “twin balance sheet problem,” in which growing non-performing assets (NPAs) and unpaid debt negatively impacted both corporate and financial sector balance sheets.
“According to the government survey and RBI, there has been a shift from the twin balance sheet issues of 2013–14 to a twin balance sheet advantage. She clarified that the balance balances of the corporate and financial sectors have not only recovered but are also in a position to support growth.
Conversations on six themes are covered in the CII conference: Green Economy, India and the World, Advanced Technology and Innovation, Jobs and Livelihood, Startups, and New Age Businesses. The two-day CII Annual Business Summit is scheduled to take place in Delhi on May 17–18.
