Prime Minister Narendra Modi on Tuesday said that the entire world is witnessing the impact of India’s fiscal and monetary policy during the Corona pandemic and credited the efforts of the government in strengthening the fundamentals of India’s economy in the last 9 years.
He said that the present government is taking policy decisions with courage, clarity, and confidence.
“Today, the need of the hour is that the benefits of the strength in India’s banking system should reach the maximum number of people,” the Prime Minister said while addressing a Post Budget Webinar on the subject of ‘Enhancing Efficiency of the Financial Services for Creating Growth Opportunities’.
This was the tenth in a series of 12 post-budget webinars organized by the government to seek ideas and suggestions for effectively implementing the initiatives announced in the Union Budget 2023.
Asking the banking system to reach out to the maximum number of sectors, PM Modi said “1 crore 20 lakh MSMEs have received huge help from the government during the pandemic”.
“In this year’s budget, the MSME sector has also got additional collateral-free guaranteed credit of 2 lakh crores. Now it is very important that our banks reach out to them and provide them adequate finance”, he added.
Recalling the time when the world looked at India with suspicion, the Prime Minister pointed out that discussions on India’s economy, budget and goals would often begin and end with a question.
The Prime Minister said today’s India is moving with new capabilities, and the responsibility of those in the financial world has increased.
He said that India has a robust financial system and a banking system that is in profit after being on the verge of collapse 8-10 years ago.
He highlighted the changes in financial discipline, transparency and inclusive approach and noted that the question mark at the beginning and end of the discussion has been replaced by Vishwas (trust) and Apeksha (expectations).
Prime Minister said that today India is being called the bright spot of the global economy and highlighted that India is presiding over G-20 and also attracted the highest FDI among any nation in the year 2021-22.
The Prime Minister noted that a major part of this investment has taken place in the manufacturing sector and emphasized that applications are continuously pouring in to avail of the PLI scheme which makes India an important part of the global supply chain.
He pointed out that the Government’s policies related to Financial Inclusion have made crores of people part of the formal financial system.
“The government has helped fulfill the dreams of crores of youth by giving Mudra loans of more than 20 lakh crore rupees without a bank guarantee”.
Touching upon the issue of ‘Vocal for Local’ the Prime Minister said that this is not a matter of choice but “Vocal for local and vision of self-reliance is a national responsibility.”
PM Modi noted that there is tremendous enthusiasm for ‘Vocal for Local’ and ‘Atmanirbharta’ in the country and talked about increased domestic production and record growth in exports.
“Our exports have been at an all-time high, whether in goods or services. This indicates growing possibilities for India”, the Prime Minister said.
He also asked the stakeholders like organizations and Chambers of Industry and commerce to take up the responsibility to promote local artisans and entrepreneurs up to the district level.
Touching upon the massive increase in the Capital expenditure outlay in the Budget to the tune of Rs 10 lakh crore and dynamism induced by PM Gatishakti Masterpaln the Prime Minister emphasized the need to support the private sector that is working for the progress of the different geographical areas and economic sectors.
“Today, I would also call upon the private sector of the country to increase their investment just like the government so that the country gets maximum benefit from it”, he added.
Dwelling on the tax-related post Budget narrative, the Prime Minister said as opposed to the past, the tax burden has come down significantly in India due to GST, reduction in Income Tax and Corporate tax.
Prime Minister pointed out the increase in tax collection over the years “In 2013-14 gross tax revenue was about 11 lakh crore rupees which can rise to 33 lakh crore in 2023-24, an increase of 200 percent” he said.
The number of individual tax returns filed increased from 3.5 crores to 6.5 crores from 2013-14 to 2020-21, he added.
“Paying tax is such a duty, which is directly related to nation building. The increase in the tax base is proof that people have faith in the government, and they believe that the tax paid is being spent for public good”, the Prime Minister said.
The Prime Minister said Indian talent, infrastructure and innovators can take the Indian financial system to the top.
“In the era of ‘Industry 4.0’ platforms developed by India are becoming models for the world”, the Prime Minister said.
He exclaimed that in the 75th year of independence, 75 thousand crore transactions were done digitally which shows how wide the expansion of UPI has become.
“RuPay and UPI are not just a low cost and highly secure technology, but it is our identity in the world” he felt.