New Delhi: Increase investment in tandem with the government’s decision to raise capital expenditure (capex) and take advantages of the opportunities unveiled in the Budget 2023-24, Prime Minister Narendra Modi urged India Inc on Tuesday. He emphasised on a host of issues surrounding the financial sector in the country, including promotion of small businesses, private investments, taxation and banking system and digital payments, among others.
Inviting the participation of the private sector, Modi said industry leaders should invest at a pace on par with the government. “Today, I would also call upon the private sector of the country to increase their investment on lines with the government so that the country derives maximum benefit. In the era of ‘Industry 4.0’, platforms being developed by India are becoming models for the world,” he said, while addressing the 10th post-Budget webinar.
The Prime Minister also urged all financial institutions to cut cost of credit in order to help small businesses across the country, and increase the pace of credit disbursal and reach out to small entrepreneurs. “Indian banks are now profitable after being on the verge of collapse about eight to ten years ago. The robust Indian financial system has increased responsibilities as the country is moving forward with new capabilities,” he said, adding, "today, the need of the hour is that the benefits of the strength in India's banking system should reach the maximum number of people."
On the investment front, the Prime Minister said trust and expectations have replaced questions with regard to discussions of the Indian economy. The government has increased outlay on capital expenditure to Rs 10 lakh crore, the highest ever. "India is being described as a bright spot of the global economy and the country has attracted the highest foreign direct investment or FDI in the country in 2021-22 with major part going into manufacturing sector," he said. "Today, there is a government that is taking policy decisions with courage, clarity and confidence."
Citing an example of the government's support to the micro, small and medium enterprises (MSMEs), Modi asked the banking system to reach out to the maximum number of the sector in the country. "The government provided help to over 1.20 crore MSMEs during the pandemic period. In this year's budget, the MSME sector has also got additional collateral-free guaranteed credit of Rs 2 lakh crore. Now, it is very important that our banks reach out to them and provide them adequate finance," he said. "The government's policies related to financial inclusion have made crores of people part of the formal financial system and for instance, the RuPay and UPI are not just a low cost and highly secure technology, but our identity in the world," the Prime Minster added.
Modi also highlighted the Indian taxation system where, India has witnessed a robust collections of taxes in the recent months. Dwelling upon the tax-related post-Budget narratives, he further clarified that the tax burden has come down significantly in India due to GST, reduction in income tax and corporate tax as well. "This, has resulted in better tax collection as the gross tax revenue was about Rs 11 lakh crore in FY14, which can rise to Rs 33 lakh crore in 2023-24, an increase of 200 per cent," he said.
"While the number of individual tax returns filed increased from 3.5 crore to 6.5 crore from 2013-14 to 2020-21. 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 added.
On Aatmnirbharta Bharat, he further said that the vision of vocal for local and the Aatmnirbharta is a national responsibility. "Vocal for Local is bigger than just buying products of 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.
