Prime Minister Narendra Modi on Tuesday exhorted India Inc to enhance investments in the country in line with the government’s decision to increase capital expenditure in Budget 2023-24.
“I would also call upon the private sector of the country to increase their investment just like the government did so that the country gets maximum benefit from it,” he said while addressing the 10th post-Budget webinar.
Touching upon the massive increase in the capital expenditure outlay in the Budget to Rs 10 trillion for FY24 and the dynamism induced by the Gatishakti Masterplan, the PM emphasised the need to support the private sector, which is working for the progress of the different geographical areas and economic sectors.
He also underlined that India is being called the bright spot of the global economy. The country attracted its highest FDI in 2021-22, with a major part going into the manufacturing sector.
“Applications are continuously pouring in to avail of the Production Linked Incentive scheme which makes India an important part of the global supply chain,” he said, urging everyone to take full advantage of this opportunity.
The Prime Minister’s comments come at a time when private investments have remained subdued amid global uncertainty caused by the Russia-Ukraine war and concerns of an economic slowdown. Since the pandemic, the government has been doing the heavy lifting on investments to maintain the growth momentum.
He also said the tax burden has come down significantly due to the goods and services tax, as well as the reduction in corporate and personal income tax, which in turn has led to better collection. Gross tax revenue has the potential to increase by 200% to Rs 33 trillion in 2023-24 from Rs 11 trillion in 2013-14, he further said.
Touching upon the issue of ‘vocal for local’ he said this is not a matter of choice, but the ‘vision of self-reliance is a national responsibility’.
He clarified that ‘vocal for local’ is bigger than just buying products from the Indian cottage industry. “We have to see which are the areas where we can save the country’s money by building capacity in India itself,” he said, citing examples of higher education and edible oil where a lot of money goes out.
The number of individual tax returns filed increased to 65 million in 2020-21 from 35 million in 2013-14. “Paying tax is such a duty, which is directly related to nation building. The increase in the tax base is proof that people have faith in the government, and they believe that the tax paid is being spent for public good,” he said.
Emphasising that the country now has a robust financial system and a banking system that is in profit after being on the verge of collapse eight to 10 years ago, the Prime Minister said the need of the hour is that the benefits of the strength in India’s banking system should reach the maximum number of people. Giving an example of the government’s support to the MSME sector, he asked the banking system to reach out to the maximum number of sectors.