In her remarks during a fireside meeting with CSIS President and CEO John J. Hamre on Friday in Washington, D.C., MDB governance reforms, global He spoke about turmoil, climate policy, financial services and “India’s economic aspirations” regarding the Indian economy. , Sitharaman recalled that the Government of India had clearly stated in Budget 2021 that there were four areas in which the Government would participate. However, he did not mention areas in which the private sector cannot enter.
Asked about the prospects of the private sector wanting to be more active in India’s banking and insurance sector, the Finance Minister said, “There is nothing to prevent them from coming and doing business.In fact, there are already many in India.” There are several private banks.” Private insurance companies already in India. Non-Indian private insurance companies are already in India. ”
“So, Standard Chartered Bank, which is a private bank that is not in India, is the largest bank with over 100 branches in India. So there is nothing to stop them, and you can stop them. “I’m not being vague when I say there’s nothing, but is there any backing, is there policy, is it written somewhere?” she added.
The Finance Minister further said that there is no sector in India where the private sector cannot work.
“Yes, it is written somewhere in the 2021 Budget under Prime Minister Modi that it is clearly stated that there are only four areas where the government will be involved. There is no area where the private sector cannot enter. In fact, India is opening up all the sectors that I think, ‘Why, even in a sector that is very sensitive to defense production, a very sensitive sector of space, today there is private business going on. That field does not exist in India and I am very proud that India suffered first. There have always been many entrepreneurs in India, some small and medium-sized entrepreneurs and some large-scale entrepreneurs,” she added. Sitharaman recalled that even under British colonial rule, India had always had big companies. She said the situation in India had changed with socialism and also spoke about the “license quota raj”. Highlighting the change in the way business started in India due to socialism, Sitharaman said, “Even under Britain’s oppressive colonial rule, large Indian companies managed to survive, operate, and grow.” “India has always had an entrepreneurial spirit, and some of them were big companies.” Some are moderate, some are small, but I’m getting into a politically sensitive area, but I’m still going to say that because of the socialism we inherited in a big way. is. ”
“I don’t think it organizes the Indian ethos and the way we’ve managed business and regulated business, so License Quota Raj is the language we use… What? Do you license them only if you like them or do you license them so you can only produce this much and no more? Are you going to impose a quota that you can’t produce? I’m telling him, no, you can only produce this much, typical socialism,” she added.
She said it was Prime Minister Narendra Modi who said, “No bureaucracy, just a red carpet for business.”
Sitharaman said that since Prime Minister Modi’s government came to power in 2014, the word “corruption” is no longer heard in the government.
Highlighting the changes in India’s policy under the Prime Minister Modi-led government, the Union Finance Minister said, “Raj will allow Raj, will you all allow him or will you not, a society that will appeal to everyone. “We are a beautiful package of principles…” he said. I don’t want to make a big profit
companies. India ended up undermining its own capabilities and no one could say that Prime Minister Modi would attract companies to India to boost business. ”
“We will also call on Indian businesses to be bold in taking risks and we will roll out a red carpet for them. In fact, India is so full of corruption and posts that we don’t need a red carpet, and we don’t need a red carpet for business. It was PM Modi who said only that.” From 2014 till date, on corruption in government, how changes were brought about to get rid of socialism, which benefited no one. “I want people who have heard the word to give it a try,” she added.
Criticizing past government policies, Sitharaman said it was only in the 2021 budget that privatization was mentioned without hesitation.
“If socialism benefited the poor, I would be happy to stand up and say that it was probably right. India’s poverty elimination rate was so dismal that socialism didn’t help them. But it helped some rent-seekers whose businesses didn’t grow.”So the 2021 Budget could use the word privatization without hesitation or batting an eyelid. What’s wrong is that Budget 2021 says it will open up all sectors to the private sector and involve the government in strategically important areas for telcos. We will not go to the border to provide phone connectivity. Government companies need to do it. I’m not saying there is no government at all, but there are strategic departments. “Now that we’ve opened it up for individuals, banks and insurance can come in without any hesitation,” she added.
In early September, the Ministry of Finance notified new Foreign Exchange (Compounding Procedures) Regulations 2024 to simplify rules and regulations regarding foreign investments. The new rules are aimed at streamlining and streamlining existing rules and regulations to make doing business even easier.
“As part of our broader efforts to streamline and rationalize existing rules and regulations to further facilitate operations, we have undertaken a comprehensive review of compounding procedure rules in consultation with the Reserve Bank of India,” the finance ministry said in a statement. said.
The new Regulations will replace the existing Foreign Exchange (Combining Procedures) Regulations 2000. The ministry said the government is focused on simplifying regulations to speed up and streamline the processing of compounding applications.
