Finance Minister Nirmala Sitharaman has called for a stronger emphasis on the manufacturing sector. Speaking at the CII Annual Business Summit 2024 in Delhi, Sitharaman acknowledged that while India has significant opportunities in services, manufacturing must not be neglected.
She emphasized the need for increased investment and robust government policies to boost manufacturing, aiming for greater integration into global value chains through enhanced product sophistication and policy support.
During the summit, the minister referenced an IMF report highlighting that India is projected to contribute 18 percent to global growth over the next five years, beginning in 2023. She noted that the period from 2023 to 2028 would be a dynamic phase for India’s growth, underscoring the country’s potential to play a substantial role in the global economy.
Sitharaman also shared insights from the S&P Global Market Intelligence outlook, which predicts that India’s consumer market could double by 2031, presenting a $2.9 trillion opportunity. Consumer spending on food alone is expected to rise to $1.4 trillion, indicating a significant growth potential. Furthermore, spending on financial services is projected to reach $670 billion, with a $390 billion opportunity yet to be tapped.
Quoting projections from the World Economic Forum, the minister mentioned that India could create 50 million net jobs in the green energy sector by 2030, contributing $1 trillion to the economy. She highlighted solar energy as a key area for job creation.
Addressing improvements in the financial sector, Sitharaman pointed out the resolution of the twin balance sheet problem, where both banks and corporates were previously burdened by rising NPAs and unpaid dues. She stated that the situation has now transformed into a “twin balance sheet advantage,” with both sectors showing significant improvement and confidence.
The CII Annual Business Summit, held over two days on May 17-18, 2024, in Delhi, fosters discussions across six key tracks: Growth and Development, Green Economy, India and the World, Advanced Technology and Innovation, Employment and Livelihood, and Startups and New Age Businesses.
