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Sitharaman Interacts With CMs, State FinMin, UTs Lt Governors To Step Up Investment, Infrastructure And Growth

Sitharaman urged states to help India become the fastest growing economy in coming years, through facilitating investment attractiveness and expediting ease of doing business measures and undertaking power reforms with regards to reduction in AT&C and ACS-RRR.

Photo Credit : PIB

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With a view to enhancing the investment climate in the country in the wake of strong recovery and the opportunities accorded by a shift in geo-political realities post-pandemic, Union Finance Minister Nirmala Sitharaman on Monday interacted with Chief Ministers and Finance Ministers of all States/ Lt Governors of UTs. 

The Finance Minister during the meeting said that the economy has been growing significantly post the second wave of pandemic and indicators such as imports, exports, PMI manufacturing, digital payments, etc. have already reached pre-pandemic levels.

Sitharaman said, "With the favourable international perception of India’s growth and in light of the structural, sectoral & financial, reforms are undertaken by Government of India, global and domestic investors are upbeat about the investment attractiveness of the country.  States should leverage this opportunity to scale up investments and growth."

Sitharaman also said that the Central Government has taken concrete steps to increase capital spending and drive infrastructure and investment-led growth.  Benefits of higher investment in Infrastructure manifest in form of increased employment opportunities, access to market and materials, improved quality of life and empowerment of vulnerable sections. 

Union Budget FY 2021-22 has allocated Rs 5.54 lakh crore capital outlay, an increase of 34.5 per cent over last year.  Additionally, around Rs 2 lakh crore allocation is for states and autonomous bodies for their capital expenditure.  Over and above this, a new incentive scheme was launched by GoI for states that could achieve at least 15  per cent of the target set for FY 21-22 by the end of 1st quarter, 45 per cent by end of 2nd quarter, 70 per cent by the end of 3rd quarter. 

Sitharaman added, "The recently launched National Monetization Pipeline includes only Central government assets and State assets have been out of its purview as of now. There is a significant potentially monetizable asset base in states which could be leveraged to enhance the capital available for new infrastructure creation and other social sector pressing priorities."

Sitharaman urged states to help India become the fastest growing economy in coming years, through facilitating investment attractiveness and expediting ease of doing business measures and undertaking power reforms with regards to reduction in AT&C and ACS-RRR. Sitharaman further emphasized that since in many cases land is one of the major bottlenecks for project on-grounding, states must contrive to smoothen land acquisition procedures and create land banks to be tapped at the time of investment.