NEW DELHI: Finance minister Nirmala Sitharaman has called on the Indian industry to overcome its hesitation and significantly increase investment, stating that the government has fulfilled its commitments on tax reforms, foreign investment liberalization and improving the ease of doing business.
Speaking at the Annual Symposium of the Indian Foundation for Quality Management (IFQM) on Thursday, Sitharaman emphasized that businesses must now expand capacity, create jobs and collaborate with the government on upskilling India’s workforce.
“I have a basket of things on which the government has delivered,” she said. “So the question which remains unanswered…I hope there’s no more hesitation for the industry to invest further, to expand capacities, to produce more in India.”
Sitharaman highlighted the consistent pursuit of reforms by Prime Minister Narendra Modi’s administration, noting that he “has never relented on reforms, nor ignored the wish list of industry.”
The call for private investment
While India’s recent economic growth has been largely driven by a surge in government capital expenditure on infrastructure, private sector investment has lagged. This has been attributed to global uncertainty, risk aversion and inconsistent demand.
The minister underscored that skilling is vital for sustaining this momentum. She pointed out that recent budgets have included provisions for training, and the government is working with various authorities to ensure young people are trained with the right incentives.
To strengthen grassroots institutions, the government is modernizing long-standing Industrial Training Institutes (ITIs). Sitharaman explained that after discussions with states, a proposal was introduced to fully fund the upgrade of at least one ITI in every district into an AI-driven training centre, operating on a hub-and-spoke model.
“In every budget over the last two to three years, we have made provisions for skilling our manpower, not only through training courses, but also by engaging them with various authorities who have well-structured skilling plans,” she said. “We are ensuring that the youth are trained with certain incentives.”
Bridging the grooming gap
Sitharaman also addressed a significant gap between formal education and industry needs. She noted that while new recruits may have degrees, many firms report that they lack job-readiness, requiring months of additional training.
She urged private companies to partner with government programs to close this “grooming gap”. She cited initiatives with states like Andhra Pradesh and international collaborations, such as with Singapore on certifying quality training, as examples of the government’s efforts.
“So, on skilling, you (industry) need to partner with the government. That’s my expectation,” she said.
In closing, she encouraged companies to maintain a continuous, year-round dialogue with the government rather than limiting their engagement to pre-budget consultations. “Please keep it going on. We are all here to hear you, and we respond,” she added.
