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Press Release

Upcoming Budget to follow the spirit of earlier budgets to prepare India for next 25 years: Nirmala Sitharaman, Finance Minister

Dec 16, 2022

  • Need to strengthen Indian manufacturing sector; Industry should focus on manufacturing, newer areas of services sector
  • Recession in the West gives chance to industry to attract companies to India

NEW DELHI, 16 December 2022: Ms Nirmala Sitharaman, Minister of Finance & Corporate Affairs, Govt of India today stated that the upcoming Union Budget will follow the spirits of the earlier budgets. "We are not only going to set the template which were set earlier but follow it and take it further for India's next 25 years. In 2047, we look forward to our children living in India which will be far more developed," she emphasized.

Addressing the inaugural session of 'FICCI's 95th Annual Convention and AGM', Ms Sitharaman added that there is a need to further strengthen the Indian manufacturing sector along with exploring newer areas of the service sector. "It is necessary to strengthen our manufacturing sector and in that Indian start-ups have shown us the way by bringing more innovation. I would urge the industry to keep close watch on the innovations coming from the start-ups. The manufacturing sector can benefit from the new energy of the start-ups for all sectors including the sunrise sector," Ms Sitharaman added.

Speaking on the global uncertainties, the Finance Minister urged the Indian industry to focus on the opportunities arising from them. "The suspected long drawn recession which is likely to affect in West will not just impact your (industry) exports but it gives us an opportunity for many of the investments which are now looking for a different place from where the activities can continue to happen. It is the best time for the Indian industry to work on strategies for drawing those manufacturers to India," she added.

The Minister further advised Indian industry that as the world transitions into clean energy, the domestic industry could face higher tariffs by the developed countries. The finance minister also urged the industry to tell the government on how climate change is affecting them and suggest ways to reduce the burden of cost falling on them. "The industry should prepare itself for tariff walls by some countries in the name of climate change," she highlighted.

Speaking on the G20, Ms Sitharaman said that India's achievements in terms of the digital capabilities that we have including financial area, payments area, banking, health or education, the achievements are stunning. "The government is using every opportunity during the G20 to showcase it so that countries which are interested in any of the digital achievements of India can benefit from it," she added.

Highlighting the domestic demand potential, Ms Sitharaman stated that as per the World Economic Forum's report, there shall be an additional 140 million middle income households and 14 million high net worth individual households which will be part of India's economy by 2030. This will provide an additional base for the domestic industry to generate demand, she added.

Mr Sanjiv Mehta, President, FICCI said that India is on the cusp of becoming the third largest economy. The transformation policy along with reform measures taken by the government have helped strengthen the foundation for it. "I firmly believe that the industry's own growth and profits are intertwined with the people and planet approach," he added.

Mr Subhrakant Panda, President-Elect, FICCI said that India is better prepared than it has ever been to deal with short-term turbulence without losing sight of the huge opportunity which is there. Speaking on the upcoming Union Budget, Mr Panda added that Indian industry has great expectations that the Budget 2023 will be growth-oriented and build further on the foundation of government's initiatives over the last eight years.

'FICCI-McKinsey & Company report 'India's Century- Achieving Sustainable, Inclusive Growth: A Roadmap for India Inc.', was released during the session.

About the report:

With India's century of independence 25 years away, the Federation of Indian Chambers of Commerce and Industry (FICCI), in partnership with McKinsey & Company, has launched 'India's Century - Achieving Sustainable, Inclusive growth,' a multi-stakeholder initiative aimed at catalyzing actions to achieve the country's full economic potential.

A launch paper for the initiative released today, outlines a roadmap for what India can do to unlock opportunities to achieve sustainable and inclusive growth along key metrics by 2047.

With input from over 200 companies, the paper identifies ten priority sectors for growth over the next 25 years, with a set of over 50 actions for companies and industry bodies, supported by the state and central governments, to unlock that growth.

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