FM compares India Inc to hesitant Hanuman, asks: What’s stopping you from investing?

Finance minister Nirmala Sitharaman on Tuesday (September 13) demanded to know from India Inc what is stopping them from investing in manufacturing even as foreign investors were so confident about the country.

Drawing a parallel between India Inc and mythological character Hanuman, Sitharaman pointed out that countries and industries abroad think this is the place to be in now, at this time. FPI and FDI is coming and the stock market is so confident. And, asked the industry leaders at the 15th Mindmine Summit in Delhi today, “Is it like Hanuman and you don’t believe in your own capacity and strength?”

The government is willing to engage with the industry and take policy action, said the FM, adding that this is the time for India. “We cannot miss the bus,” she stressed.

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Further, Sitharaman pointed out that the government has brought in production linked incentive scheme, cut tax rates to encourage the domestic industry to invest in manufacturing. “No policy can be end in itself… it keeps evolving as we go on. That applies even to industries that have come in the sunrise sector for which we have given policy support through an incentive,” she said.

“I would equally want to know from the Indian industry why is it that they are hesitant (to invest). We will do everything to get the industry come and invest here..(but) I want to hear from India Inc what’s stopping you?,” she asked.

The countries and industries abroad think India is the place to be in now, FM said, pointing out that this is reflected in FDI and FPI inflows and confidence among stock market investors.

“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,” said Sitharaman.

Interest in rupee trade

Sitharaman also said many countries have evinced interest in bilateral trade in the rupee after the RBI announced a mechanism recently. She said this, along with other steps taken by the government, work towards full capital account convertibility.

“It isn’t the rouble-rupee which was in the old format. Now this (bilateral rupee trade) formulation, which I am glad the RBI has come up at a time which was so critical…,” she said when asked if India is ready for capital account convertibility.

Highlighting that many countries have evinced interest in trade in the rupee, the FM said, in a way it is opening the Indian economy more than what can be imagined. “Post-pandemic, India is coming up with so many out-of-the-box solutions…I would like to highlight the fact that we are a lot more open with the Indian economy, a lot more open in the way we are talking to countries, we are willing to have our digital platform become interoperable between countries to enable cross-border transactions,” she said.