During her speech at the CII Annual Business Summit 2024 in Delhi, Finance Minister Nirmala Sitharaman stressed the importance of boosting the manufacturing sector. She explained that, alongside services, manufacturing plays a crucial role and requires more government investment and support to thrive.
At the same event, the Finance Minister projected that the Indian consumer market would double by 2031. She also mentioned that India is expected to contribute 18% to global growth in the next five years.
Indian Consumer Market to Double by 2031, Says Finance Minister
Finance Minister Nirmala Sitharaman emphasized the Indian consumer market growth narrative. She expressed confidence in the healthy balance sheets of both the corporate and finance sectors. Additionally, Sitharaman underscored the importance of enhancing manufacturing capabilities to foster self-reliance and economic growth.
Nirmala Sitharaman highlighted the need for sophistication in product manufacturing, stressing that concerted efforts to expand this sector are crucial. By bolstering manufacturing, India aims to meet domestic demand more effectively and reduce dependency on imports, thus advancing towards self-reliance.
Finance Minister Highlights India’s Growth Potential
Finance Minister Nirmala Sitharaman shared insights from various reports about Indian consumer market growth.
- An IMF report predicts that India will contribute 18% to global growth starting in 2023, signaling that the Indian consumer market will double by 2031.
- S&P Global Market Intelligence outlook projects significant growth in India’s consumer market, expected to double by 2031, with a $2.9 trillion opportunity. Consumer spending on food is estimated to rise to $1.4 trillion, presenting a $1 trillion opportunity.
- Spending on financial services is projected to reach $670 billion, offering a $390 billion opportunity.
- World Economic Forum forecasts the creation of 50 million net economy jobs in India from green energy by 2030, with a $1 trillion economic impact.
- The Finance Minister points out improvements in India’s financial sector, citing the resolution of the twin balance sheet problem, which has led to a favorable situation for both the corporate and financial sectors.
- The CII conference covers discussions on six tracks: Growth and Development, Green Economy, India and the World, Advanced Technology and Innovation, Employment and Livelihood, Startups, and New Age Businesses.
- The CII Annual Business Summit is a two-day event held in Delhi on May 17-18, facilitating discussions on various aspects of India’s economy and business landscape.
Finance Minister’s Vision for India’s Future
During her speech, Finance Minister Nirmala Sitharaman highlighted India’s status as the fastest-growing economy, recognized by global institutions. She expressed confidence in Prime Minister Narendra Modi’s prospects for a strong majority in the upcoming elections and outlined her vision for India’s future.
Sitharaman assured that suggestions from the CII would be incorporated into the July budget. She emphasized the tradition of collaboration between CII and the government to address global challenges and leverage national opportunities effectively.
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