Indian industries must seize the moment and compete globally: Nirmala Sitharaman

CHENNAI: Stressing that India is proving to be the leader in sunrise sectors, Union finance minister Nirmala Sitharaman on Thursday said industries in the country must seize the moment and compete globally.

Delivering her address at the 114th annual general meeting of the Southern India Chamber of Commerce and Industry (SICCI) in Chennai, Sitharaman said India is contributing to 16% of the global GDP. Even as advanced economies are struggling to showcase an increase in 1%-2% growth in their GDP, India's GDP touched 7%, she said.

There were a lot of expectations from the Indian industry that they would come out of the Twin Balance Sheet Problem and be in a position to invest and expand their business in the light of corporate taxes being reduced post-2019. But Covid had an impact and industries faced difficulties from coming out of it, she added.

"But, now I think, India is at a stage where the newer industries and sectors, besides the employment and production linked incentive schemes offered by govt and sunrise areas, the country is proving to be a leader. We have that much capability and potential in this country. I would think industry should seize this moment and leap forward for their own advantage so that they can compete globally and also be in a position to contribute to India's growing needs," she said.

Elaborating on the efforts taken by the Centre in skilling employees, Sitharaman said ahead of the Prime Minister's visit to Singapore, a ministerial delegation from India had had extensive discussions on skilling and certification with Singapore.

"Singapore ITE Education Services will be setting up six skilling centres in India for training our youth, certifying them and helping out for training people to certify in the future. The centres will be coming up in states including Bhubaneswar (Odisha), Guwahati (Assam) and possibly Gujarat and Maharashtra," she added.

Pointing out that the strength exhibited by the southern states have resulted in several global capability centres (GCCs) being established in these states, she said the GCCs already set up in the south are now looking tier 2 and tier 3 cities because the costs have reached such levels that they are unable to meet their business formula.

"I would think there is potential in the future not necessarily in the south Indian states alone, but moving further north to Maharashtra, Madhya Pradesh and Odisha and so on."

The Union minister said south India holds huge potential, and all the regions must work towards one India. There is a severe shortage for manpower in the south, which needs to be filled by employees from other regions of the country, she added.

"Whenever we talk about south India, there is a sense that we are better off than other Indians. But we are part of India. Each part of India fuels the other equally. South India and its strengths will have to benefit India as always," she added.

Earlier, Arun Alagappan, president, SICCI and executive chairman, Coromandel International, said, “Looking ahead, our priorities will include expanding our arbitration centre and establishing the Centre for Economy & Innovation, broadening our impact with new offices in Kochi, Coimbatore, SPR City, and plans for Hyderabad, strengthening global business through international delegations.”

SICCI Centre for Excellence in Deep Tech at Bharathiar University, Coimbatore, and SICCI chapters in Kochi & SPR City were also inaugurated on the occasion.