Union Finance Minister on Monday Nirmala Sitharaman Will meet state chief ministers and finance minister to identify measures needed to kick-start the investment. This will be followed by a meeting with bank heads on Tuesday to identify sector-wise problems. And, the issues will be presented to the Prime Minister on Wednesday Narendra Modi When he meets with bank heads, it is also seen as a sign of lending at a time when credit flows are muted.
“There is capital expenditure on the government side, and there is positive sentiment from the private sector, though perhaps not fully translated into actual investment on a large scale. Capital market activity indicates that a lot of investment is probably on the cards,” Finance Secretary TV Somanathan said.
The top civil servant said that the government believes that it should capitalize on the positive sentiment to take the economy and investment on a higher growth path. “This is an opportunity, an opportunity that we should not let go,” he said.
With demand showing signs of a strong return to the services sector, the government believes that the private sector is now in a position to invest. In the meeting with bankers, regional issues will be discussed as the Centre, along with the states, seeks to remove barriers and boost investment, which it hopes will translate into jobs.
Somanathan said that at least seven states – Chhattisgarh, Kerala, Madhya Pradesh, Meghalaya, Punjab, Rajasthan Rajasthan And Telangana – Have availed incentives announced by the Center for increased capital expenditure during the first half so far. As an incentive, these states have been allowed to borrow an additional amount of Rs 16,691 crore from the markets.
economic affairs secretary Ajay Seth He said the discussions with the states will revolve around issues like land, water, electricity availability and how policies can be eased to attract investments.
“While investor sentiment is good, the momentum already created needs to be capitalised. Foreign direct investment of $64 billion has already come in the first four months of FY 2021-22. The dialogue will strive to create a policy dialogue and a facilitating environment for inward investment-led growth
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