By Ashoke Raj/Sahil Pandey |
New Delhi [India], March 4 (ANI): Noting that India is the destination for businesses, Finance Minister Nirmala Sitharaman on Saturday said that the country has the right combination of factors that matter for a growing economy including a middle class, captive market with purchasing power, technology-driven public investment and products, digital infrastructure and rule of law.
In her remarks during an interaction at the Raisina Dialogue here, Sitharman also said that there is no sector in India that is not available for the private sector and rejected opposition criticism that government is on a selling spree of public assets.
“There is no sector in India that is not available for the private sector to be in function. Public sector policy is not a crazy one and the government is not selling out everything. Opposition fully understands the meaning but says we are selling them off. We are not selling them off,” she said. She said India is putting across voice of the Global South at G20.
Sithraman said that well-trained youth, middle class giving a captive market, technology-driven investment and public infrastructure were among reasons for India’s sustained growth.
Referring to climate finance, she said both adaptation and mitigation need to be discussed. “There is a greater readiness to discuss the Global South and their needs.”
Referring to AtmanirbharBharat thrust of the government, she said it is not a protectionist measure. “There are several ministers who are part of the G20 who have been speaking of friendshoring. India, today, is the destination for businesses. We have the right combination of things that matter for a growing economy–a middle class, captive market with purchasing power, tech-driven public investment and products. Digital infrastructure exists,” she said.
Friendshoring refers to relocating supply chains to countries with low risk of disruption from political factors or those considered political and economic allies. US Treasury Secretary Janet Yellen had said during her visit to India last month that Washington is advancing an approach called “friendshoring” to boost resilience of its supply chains by strengthening integration with trusted trading partners including India.
Sitharaman also said the way the government responded to COVID-19 pandemic and the necessity of sustaining growth have worked out really well. (ANI)
India has been talking about how multilateral institutions need reform: Sitharaman
New Delhi [India], March 4 (ANI): Finance Minister Nirmala Sitharaman said on Saturday that India has been talking about reforms in multilateral institutions and an expert panel has been formed on how multilateral development institutions should respond to 21st Century challenges. Speaking at the Raisina Dialogue here, Sitharaman said an expert panel has been proposed during India’s G20 Presidency as part of efforts to make the multilateral developmental institutions, which includes the World Bank, ready for challenges of this century.
She said India is putting across voice of the Global South at G20. “India has been talking about how multilateral institutions need reform. We have an expert panel on how multilateral development institutions should respond to 21st century challenges,” she said.
The Chair Summary and Outcome Document of the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting held in Begaluru last month said that multilateral Development Banks (MDBs) play a key role in development financing and G20 countries recognise the need for MDBs to evolve given the scope and complexity of trans-boundary challenges and for catalysing private investment.
The G20 Finance Ministers said they will work to strengthen MDBs and take note of the World Bank’s roadmap for evolving the Bank’s mission, operational approach, and financial capacity within their country engagement model.
They called upon other MDBs to report on their efforts to address similar challenges. “We look forward to receiving the report of the Expert Group proposed by the G20 Indian Presidency for deliberations on this issue in our third meeting in 2023,” the Outcome Document said. “Taking forward the mandate given by the G20 Leaders in Bali, we task the International Financial Architecture Working Group to work with the MDBs to develop a G20 Roadmap, for implementing the recommendations of the G20 Independent Review of MDBs Capital Adequacy Frameworks (CAF) based on updates from MDBs in Spring 2023. We look forward to receiving the roadmap in our third meeting in 2023,” the Outcome Document said.
The G20 Finance Ministers urged MDBs to increase their efforts to discuss and propose options for implementing the recommendations within their own governance framework while safeguarding their long-term financial sustainability, robust credit ratings and preferred creditor status.
In her remarks at the Raisina Dialogue, the Finance Minister said that multilateral institutions should have skills to raise money from the market to have enough money in their pool. “They are 20th-century products and for them to leverage to their maximum levels, they should be ready for 21st-century challenges and should have the skills to raise money from the markets so that they have enough money in their pool…It is one of the constant points which Prime Minister Narendra Modi had been speaking of,” she said.
She also mentioned that there was complete unanimity that the members need to deal with stress issues of the countries. Sitharaman also spoke about the government’s response to COVID-19 pandemic. “At every level beginning from Prime Minister to the secretaries in the ministries, we were constantly in contact with people who would give inputs on how to respond to the development of the situation. This is one of the obvious points which I can refer, as to why the way we responded to the pandemic,” she said. “The way we responded to the necessity for sustaining growth have all been worked out like this. These are our responses that have worked out to be more purpose-serving,” she added.
Answering a query, she said states are also seeking higher investment and faster growth.
“I won’t get into the argument on whether the Centre or the states are doing more. States are also getting into a race.” They have been saying: ‘Is our state attractive enough or alluring enough for investments to come and invest’?” she said. (ANI)
The govt is not crazy to rush out to sell everything: Finance Minister Sitharaman
New Delhi [India], March 4 (ANI): Union Finance Minister Nirmala Sitharaman on Saturday said the government is not crazy to rush out to sell everything and the Opposition fully understands the meaning of divestment but would still say “you are selling that off”.
During the eighth edition of Raisina Dialogue in Delhi, the finance minister said, “The government is not crazy rushing out to sell everything. Because of strategic interest, you (the government) would have to be there in the sector, like telecom. These firms will be run professionally.” She added: “The Opposition fully understands the meaning of divestment but would still say you are selling that off.”
The Union minister said, “We have announced four core sectors where we have said there will be at least minimum presence of the government. But they have been also opened for private sector.”
“There is no sector in India that is not available for the private sector to be in function,” the Union minister said, adding that, “Public sector institutions which have begun to run on their own steam will be there but if there are others which are very small or unsustainable or not scalable.”
“If there is a possibility, we will try to blend them so that the bigger unit or sustainable unit on its own take care of its needs. We will blend and create a larger company,” she said, “But, if there are two small ones and also small ones which cannot be blended with bigger one, we will try to see if others would like to take them over or if it is not possible to be sold, they will be shut.”
“It’s divestment for those assets that exist that aren’t used properly or which are optimally not generating revenues. They will be monetised. But monetisation is not like I’m selling it off,” Sitharaman said, adding, “It means certain value is assessed and what newly it can create by being used or being put into productive use.” (ANI)