Make good use of Centre’s incentive schemes: FM urges India Inc #IndiaFinance

Union Finance Minister Nirmala Sitharaman addresses the audience during the 114th AGM of the Southern India Chamber of Commerce and Industry (SICCI), in Chennai on Thursday
| Photo Credit: ANI

Union Finance Minister Nirmala Sitharaman on Thursday urged India Inc to take advantage of the Centre’s production-linked and employment-linked incentive schemes to increase their capability and “leap forward”.

Addressing the 114th AGM of the Southern India Chamber of Commerce and Industry (SICCI) here, Ms. Sitharaman said post the reduction of corporate taxes in 2019, there was a huge expectation that India Inc would expand their businesses.

However, the COVID-19 pandemic wreaked havoc on industries, which took time to recover.

Ms. Sitharaman said India had already taken the lead in sunrise sectors such as green energy and industries, and could focus on newer sectors.

“A few days ago, the World Bank reiterated that India will grow at 7% in the coming year as well,” the Minister said, adding, “This is purely because of stable policy-making and visionary leadership, which, together with the efforts of entrepreneurs and industries, is ensuring that India has the lead in some sunrise sectors.”

“This advantage, along with the production-linked incentives to 13-14 sunrise sectors, is resulting in rapid growth of these sectors, be it renewable energy, green ammonia, or green hydrogen. We have already proven to the world that we are leaders in solar energy,” she added. The FM also said there is a lot of potential in the Southern states.

“The South Indian states have already demonstrated a leading advantage in setting up fintech-related activities. Global capability centres are relocating here because of the demonstrated strengths in these areas. However, it’s time to also tap into the youth from the rest of the country,” she said.

However, Ms. Sitharaman cautioned on the current debate about Southern States vs the rest of the country.

SICCI President and Executive Chairman of Coromandel International Ltd. Arun Alagappan proposed SICCI’s ‘Strategic Vision for 2047’, which included strategic priorities “to accelerate India’s journey towards the developed nation status.” These included Climate Change & Decarbonisation, Technological Disruption & Digital Transformation, Emerging Sectors & Innovation (led by Fintech, Deep tech, EVs, etc.), Skill Development & Workforce Empowerment, and Harnessing Demographic Opportunities.

During the event, Ms. Sitharaman unveiled the ‘SICCI Centre for Excellence in Deep Tech’ at Bharathiar University, Coimbatore, as well as SICCI’s Chapters.