After tech billionaire Elon Musk postponed his scheduled visit to India due to “heavy obligations” at work, Union finance minister Nirmala Sitharaman reiterated that the Indian government is committed to fostering a business-friendly environment, especially in light of industries expressing concerns about their reliance on China.
Speaking at a press conference in Ahmedabad, Sitharaman emphasized that India’s policies are designed to attract large companies and encourage them to invest in the country. This approach is part of the broader China Plus One strategy, which aims to diversify investments away from China towards other promising economies like India.
Musk, who had planned a two-day trip to India to meet Prime Minister Narendra Modi, announced on X that he would visit later this year due to obligations with Tesla. The finance minister reassured that India’s policies and initiatives will continue to support major companies interested in setting up operations in the country.
Sitharaman also highlighted India’s progress in becoming the world’s fifth-largest economy and its ambition to reach the third position within the next two to two-and-a-half years. Regarding inflation, she pointed out that under the current government, it has remained within the tolerance band, with only one exception, contrasting with the double-digit inflation before 2014.
The finance minister discussed various topics, including support for Micro, Small, and Medium Enterprises (MSMEs), employment initiatives, and the fluctuations in the Indian rupee against the US dollar. She acknowledged that a law requiring larger companies to pay MSMEs within 45 days of receiving goods or services has been in place since 2007-08 but noted challenges with its implementation. Sitharaman clarified that companies should claim expenses only in the year they pay MSMEs, not earlier.
On employment, Sitharaman admitted a lack of comprehensive data from both formal and informal sectors but underscored the government’s efforts in providing jobs, particularly through the Rozgar Mela initiative, which has employed 1 million individuals between October 2022 and November 2023.
Addressing industry leaders from Gujarat on ‘Viksit Bharat -2047’, Sitharaman remarked on the state’s leading role in semiconductor manufacturing and its substantial share (28%) of the total capital under the Production Linked Incentive (PLI) scheme. She also highlighted the significance of the International Financial Services Centre (IFSC) at GIFT City in Gandhinagar, positioning it as a critical hub for attracting investments and promoting financial services.
Despite Musk’s postponed visit, India continues to pursue policies aimed at attracting global investors and facilitating a business environment conducive to manufacturing and services, reinforcing its commitment to becoming an attractive destination for industries worldwide.
