Prime Minister Narendra Modi will soon lead the government’s initiative to attract more foreign investment to the country. In this regard, Modi plans to meet with 15 leading global funds houses to get their opinion on the asset class and the issues that need to be addressed.
“Fund houses all over the world are in contact with us and they want us to provide good assets and the required patent capital (long-term capital) with a not very high, but stable return, and that is another area that we are looking at. . PM will soon meet with some 15 leading houses of the world for an interaction and their views on the matter, “said Tarun Bajaj, secretary of the Department of Economic Affairs during the IIC virtual conference on Wednesday.
Apart from this, the government is exploring possibilities to channel domestic savings and domestic assets into the country. He said that there are around 16 trillion national assets that could be channeled. “There is a lot of capital available in the country and now it is increasing unlike 10 years ago, when there was no money available. For example, the government is in talks with regulators to modify the rules that would allow the Employees Provident Fund infra sector, “Bajaj said.
Bajaj also said there is a lot of emphasis on public sector policy or privatization policy and it is expected to get cabinet approval soon. Sources say that the proposal to define strategic sectors should be taken by the cabinet within a few weeks. The draft policy has been distributed among 45 central ministries and departments. And now, it’s ready after months of deliberation.
On spending estimates, Bajaj said the DEA has asked other departments to boost spending which has a multiplier effect. “The government tries to cajole the ministries, the public sector companies, to boost spending on infrastructure. And it will provide more money if necessary to revise the estimates, “he said.
In addition, the performance-linked incentive (PLI) scheme for mobile phones, pharmaceuticals and medical equipment will be extended to another 7-8 sectors. This comes after a positive response from mobile manufacturers, showing diversification in the supply chain. Bajaj said it intends to include sunrise sectors in the scheme.
The DEA secretary said the government has undertaken several reforms, such as the bilateral compensation law, whereby the capital savings of banks alone would amount to Rs 60 billion.
On capital markets, he said the market regulator needed to look at retired people, while others were lured with products like AT-1 bonds.
Speaking about the economy, Bajaj said it took a few to direct the fiscal and monetary steps to boost the economy. “Initially, our efforts were directed at the vulnerable section. We take some direct fiscal measures to boost the economy. We are working on some specific suggestions on the guarantee scheme for the emergency line of credit, “he said.
According to him, in January-February, the Indian economy looked better than before. He said that India is seeing a positive side in health and that the number of Covid-19 cases has started to decline. “The economy and health are connected and there are strong correlations. On the positive side, the private sector will gain confidence ”. Bajaj said.
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