In a recent address, Union Finance Minister Nirmala Sitharaman reaffirmed the government’s commitment to implementing bold reforms, even as Prime Minister Narendra Modi’s administration enters its third term. Speaking at News18’s ‘Chaupal’ event, she rejected concerns about how coalition politics might hinder the government’s functioning, emphasizing stability and continuity in governance.
GDP Outlook and Economic Growth
Sitharaman also provided insights on India’s economic growth trajectory. She acknowledged the impact of the lockdown on the first quarter’s capital expenditure, attributing it to a temporary dip. “Due to the lockdown, capital expenditure could not be much in the first quarter, impacting our overall GDP growth,” she noted. However, she expressed optimism that expenditures would ramp up in the upcoming quarters, providing a significant boost to GDP growth.
Focus on Employment Generation
Addressing employment issues, Finance Minister Sitharaman highlighted the government’s efforts to empower the workforce. She stated, “Through the Vishwakarma Yojana, we have successfully enlisted 2.2 crore skilled workers, which will provide them with kits and financial support.” In addition to this initiative, she elaborated on five new training and employment skill programs aimed at helping one crore individuals secure jobs. The government is particularly focused on improving conditions for Micro, Small, and Medium Enterprises (MSMEs), introducing eight new reform measures to facilitate collateral-free loans.
Strengthening the MSME Sector
Sitharaman discussed the challenges faced by the MSME sector, particularly the difficulties in obtaining loans for machinery purchases. “One major obstacle that MSMEs face is accessing financial resources necessary to acquire new equipment,” she explained. The government aims to address this issue through targeted support measures. She noted that during the interim budget presentation, they stressed the importance of focusing on four key demographics: women, youth, and farmers, stating that the government will prioritize development initiatives over caste-based considerations.
Table: Key Initiatives by the Government
| Initiative | Target Group | Objective |
|---|---|---|
| Vishwakarma Yojana | Skilled Workers | Provide kits and financial aid |
| Employment Skills Programs | Job Seekers | Train one crore individuals |
| MSME Reforms | Small Enterprises | Facilitate collateral-free loans |
| Focus Areas | Women, Youth, Farmers | Promote development over caste considerations |
