Govt has made policies to make India attractive for investment: Nirmala Sitharaman

After American tech billionaire Elon Musk postponed his India visit due to his “heavy obligations” at work, Union finance minister Nirmala Sitharaman said the government has tailored policies to make India an attractive hub for manufacturing and services, especially in the light of industries expressing concerns about China.
In response to a question about Tesla CEO Musk’s decision, Sitharaman, at a press conference in Ahmedabad, said, “When big companies show interest to come to India, we will do everything to make it attractive for them to come and invest. In that process, if there is anything to discuss, we will certainly discuss. But whatever we do, we do it through policies and this has helped. Especially after China Plus One started being a concern for many industries…we have made policies in such a way that we are making India an attractive destination, both for manufacturing and services.”
China Plus One is a business strategy to avoid investing only in China and to channel investments in other promising economies such as India
Musk, who was expected to be in India on April 21 for a two-day trip and meet Prime Minister Narendra Modi, wrote on X that he looks forward to visiting India later this year. “Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year,” he wrote.
Sitharaman also said that after significant efforts, India has become the world’s fifth-largest economy, and the country is confidently aiming to secure the third position within the next two to two-and-a-half years.
She said, “After significant efforts, we have become the world’s fifth-largest economy and are confidently aiming to secure the third position within the next two to two-and-a-half years.”
Also Read | Electoral bonds will be back after consultations: Finance Minister Nirmala Sitharaman
Talking about inflation, Sitharaman said it never crossed the tolerance band, except for one month, under the Narendra Modi government, whereas before that (pre-2014) the economy was in bad shape and inflation was in double digits. “At that time nobody had any expectations from the country.
Asked about the rule that requires larger companies to pay Micro, Small and Medium Enterprises (MSMEs) within 45 days of receiving goods or services, Sitharaman said the law has existed since 2007-08 and was not new. “Later MSMEs themselves came and said the 45-day payment is not happening within that financial year. But within that financial year, this amount is shown as expenditure and to that extent tax is not being paid.
“We just said tax treatment remains the same. Make a claim in the year you pay to the MSMEs. How can you claim when you have not made payment?” she asked.
Regarding employment, Sitharaman acknowledged the lack of comprehensive data from both formal and informal sectors but affirmed that the government’s initiatives have facilitated jobs for millions.
Also Read | HT interview: Economy relevant to elections; people can see govt taking up issues of well-being, says Nirmala Sitharaman
“While recognising the inadequacy of available data, I must acknowledge that substantial support has been extended to individuals and startups through various schemes,” she said. Between October 2022 and November 2023, the government provided employment to 1 million individuals through the Rozgar Mela initiative, she added.
Asked about the Indian rupee weakening against the US dollar, she said the fluctuation was due to global uncertainty, wars as well as uncertainty in supply of crude oil from the Middle East. Earlier, addressing industry leaders from Gujarat on ‘Viksit Bharat -2047’, she said 28 per cent of the total capital under the Production Linked Incentive (PLI) scheme has come to the state, which has shown remarkable alertness in the last 10-12 years.
Sitharaman emphasised that Gujarat stands at the forefront of semiconductor manufacturing for India, supported by a conducive policy framework and a well-prepared government and ecosystem aligned with the vision of Viksit Bharat 2047. Highlighting the significance of the International Financial Services Centre (IFSC) at GIFT City in Gandhinagar, she described it as a crucial gateway for the growth of services in Gujarat, providing India with access to global markets for attracting investments and facilitating financial operations.