CALCUTTA: Finance Minister Nirmala Sitharaman said on Thursday that the government has taken various measures to support the economy but no amount of intervention will be adequate to deal with the crisis triggered by the Covid-19 pandemic.
Addressing the annual general meeting of the Indian Chamber of Commerce (ICC), Sitharaman said that while green shoots and signs of revival in the economy were visible in early 2020, he was upset with the pandemic.
The government has taken steps for the interventions by consulting various chambers of commerce, and Prime Minister Narendra Modi also received comments from the industry, he said.
For example, the government announced Garib Kalyan Yojana, free cooking gas and direct benefit transfer schemes, Sitharaman said.
Three different sets of announcements were made regarding ‘Atmanirbhar Bharat‘, and together with RBI, certain tailor-made schemes were unveiled for various sectors based on demand, he said.
“We did not restrict the opportunities to any particular sector. This was necessary to keep the industry floating,” Sitharaman said.
“But no amount of government intervention will be adequate,” he added.
Sitharaman said that while the 1991 reforms were a big step, they had a balance of payments crisis.
“If the government at that time had done something else, the economy would have been in better shape now,” he said.
The government has carried out reforms in the agricultural sector, introduced new flexible labor codes and made imports of goods that can be produced in the country more expensive, the finance minister said.
Regarding the next Budget, he said that public spending will be maintained, including capital and infrastructure.
Sitharaman said that several sovereign and pension funds are willing to come to India with long-term commitments, which is generating a higher inflow of FDI than comparable economies.
The divestment agenda, which obtained Cabinet approval, will continue and banks will be run by professionals with risk officers brought in from outside and not appointed from within, he said.
“DIPAM will be more active. What we see the most is dynamism, ”said the minister.
Exuding hope, Sitharaman said: “We are seeing clear signs of revival. But that has to be sustained. We need input from the industry at this extraordinary time during budgeting.”
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