Finance Minister Nirmala Sitharaman emphasized the need to bolster India's manufacturing sector by harnessing the potential of new technologies driven by the country's startups. Speaking at the FICCI's 96th annual general meeting, she highlighted the significant opportunity presented by India's fast-growing economy, projecting a considerable rise in middle-income households and high-net-worth individuals by 2030, based on World Economic Forum data.
Sitharaman underscored the immense market potential in India, equivalent to that of several jurisdictions combined, emphasizing the rarity of finding such a large market within a single country. While acknowledging the growth in the services sector and India's strides in IT, she stressed the criticality of expanding the manufacturing sector for the nation's progress.
Amid looming recession concerns in the West and the potential impact on exports, she advocated for focusing on the domestic market. Sitharaman urged the industry to explore new technologies through collaborations with local startups, citing a substantial increase in patents filed by startups in recent years as an indicator of their innovative potential.
Encouraging partnerships between industries and startups, Sitharaman envisioned mutual benefits and emphasized the importance of industry closely monitoring and capitalizing on the innovations emerging from startups. She highlighted the government's role in providing a conducive technological platform to facilitate these innovations.
Additionally, Sitharaman noted the potential influx of investments from Western companies seeking to mitigate the slowdown in their home countries, positioning India as an attractive investment destination.
Touching on climate change, she acknowledged the potential impact on the industry and assured the government's commitment to mitigating this burden, indicating efforts to address environmental concerns while supporting industrial growth.
(With Agency Inputs)
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