FM Sitharaman compares India Inc to 'Hanuman', asks why it is hesitant to invest in manufacturing

She said the government has brought in PLI scheme and cut tax to encourage the domestic industry to invest in manufacturing

Finance Minister Nirmala Sitharaman Tuesday asked India Inc to speed up investment in the country at a time when foreign investors were showing confidence in India.

“If it is not sort of impertinent to say this now, I equally would want know from the Indian industry what is it that they are hesitant about…Since 2019, when I have taken charge of the finance ministry I have been hearing—the industry doesn’t think it is conducive (for investments).

Drawing parallel between India Inc and mythological character 'Hanuman', Sitharaman said the government is willing to engage with the industry and take policy action.

She said the government has brought in production linked incentive scheme and cut tax rates to encourage the domestic industry to invest in manufacturing.

Read | Inflation not a 'red-lettered priority' for FM: Chidambaram

“Alright, bring the rate down; the tax rate was brought down…. Give production linked incentive (PLI)—we have given PLI. I want to hear from the India Inc. what is stopping you?" Sitharaman asked business leaders at the Mindmine Summit 2022 here.

“When countries abroad think this is the place to be now… foreign direct investment is coming, foreign portfolio investments are coming, the stock market is so confident and Indian retail investor believes in them,” she said.

“Is it like Hanuman? You don't believe in your own capacity, in your own strength and there got to be someone standing next to you and say you are Hanuman, do it? Who is that person going to tell Hanuman? It can't certainly be the government," Sitharaman added.

"This is the time for India... We cannot miss the bus," she said.

The government cut the effective corporate tax rate from 35 per cent to 36 per cent in 2019. India Inc had then held the tax cut saying it would increase investment, spur demand and encourage multinational corporations to shift their units in India.

The government had also unveiled production-linked incentive scheme in dozens of sectors to give a push to domestic manufacturing. Even after that the private sector investment has not been showing robust signs of recovery.

(With PTI inputs)