Sitharaman meets India's state leaders on post-Covid economic recovery

INDIAN finance minister Nirmala Sitharaman on Monday (15) chaired a meeting of chief ministers and finance ministers of various states of the country via video-conferencing on the issue of economic recovery post-Covid pandemic.

Finance secretary TV Somanathan, who briefed about the meeting, said, “Growth had slowed down in the Covid-19 pandemic. However, after the first quarter of the current fiscal, the economy has picked up again with green shoots of recovery clearly visible.

“Several economic indicators are now at pre-pandemic levels. Projections of International Monetary Fund and World Bank peg India's GDP growth at about 9.5 per cent and 8.3 per cent respectively, as one of the fastest-growing economies.

“While the investor sentiment is good, there is a need to capitalise on the momentum already created. The first four months of FY 2021 have already witnessed inflows of USD 64 billion (£47.5 billion) foreign direct investment. The Government of India in its Union Budget 2021-22 has given further impetus to the inflow of foreign investment capital through streamlining procedures, removing roadblocks and providing necessary incentives,” he said.

He also said the objective of Sitharaman’s meeting with other state leaders was economic recovery.

“India is becoming a thriving destination for foreign investors. These positive sentiments should be capitalized and the opportunity is to be utilised. To push India’s growth story towards the higher path, the states’ role is important and is an essential component. In this regard, finance minister is holding meeting with chief ministers on state-level issues. Challenges faced by the states will be discussed. Efforts will be made to resolve those issues that will help the country,” he said.

Ajay Seth, secretary of the department of economic affairs said the finance minister wants to embark on a collective growth vision for the country and encourages an open exchange of ideas around enhancing the investment climate of India.

“The envisaged interaction will attempt to create a policy discourse and a facilitative environment for inward investment-led growth. This will be enabled by a pro-active approach to investment promotion, efficiencies brought about by Ease of Doing Business reforms, and an emphasis on accelerating approvals and clearances up to Urban Local Bodies levels,” he said.

Seth also said that through the talks with Sitharaman, the states may share their ideas and vision for enhancing the investment climate, leading to a broad consensus on the trajectory to be undertaken for India to become the fastest-growing economy, Asian News International reported.