Finance Minister Nirmala Sitharaman stated on Thursday that Indian economy's buoyancy is now visible as it has benefitted from the coordinated efforts and collective thinking of all its stakeholders. Sitharaman declared that the Finance Ministry is sure that this year they will be able to pay GST compensations to all states on time. She added that states will "have money in their hands to undertake all the developmental activities they need to take".
While addressing the CII Annual Meeting 2021, Sitharaman thanked the industry for their level-heading thinking while the country was facing challenges during the first and second wave of the COVID-19 pandemic. She added that no one was able to predict the sheer scale and speed at which the second wave hit India.
The Finance Minister explained that the government has been an active participant in the economic recovery of the country from the impact of the COVID-19 pandemic. She stated that the public spending during the COVID-19 outbreak ensured that the core sector grew at nearly 9%. She added that the government has given all the boost to consumption that is necessary.
Sitharaman conveyed that FDI has been flowing into India. She added FDI inflow is up 37% during the first five months of this year compared to the same period last year. She explained that the country's foreign reserves are at $620 billion as of July 2021. "The messages and indications which are coming are very clear that the economy is revving to come out," Sitharaman added.
She said that the buoyancy in direct taxation is also improving. Commenting on the disinvestment plans of the government, she said, "our commitment to disinvestment and privatisation is firmly ingrained in policy. There is no discretion & there is a calendar."
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