Government Sees Private Sector As A Partner In Developing India, Nirmala Sitharaman Says

India's Finance Minister Nirmala Sitharaman appealed to India Inc to act as partners in developing India, ahead of the government's stated goal of becoming a developed country by 2047.

"We see a very big role for the private sector and would like to partner with them for (the) development (of India), with the government acting as a facilitator and enabler," she said while speaking at the CII Annual Business Summit.

Her address comes amid the moral code of conduct and the upcoming fifth phase of the Lok Sabha elections in India, where voters will cast ballots for 49 seats in six states and two union territories on Monday.

India's demographic dividend will persist for a 30-year window, according to the minister. It will come with a historically low dependency ratio. This would essentially increase net consumption, Sitharaman said.

She cited reports by the International Monetary Fund, which estimate that India’s contribution to global growth for five years beginning in 2023 (between 2023-28) will be 18%, to evidence India's growth story.

She also highlighted S&P reports on the Indian consumer market, which is likely to double by 2031, amounting to a $2.9 trillion opportunity, with consumer spending on foods alone estimated to rise to $1.4 trillion.

When it comes to manufacturing, as the world looks to diversify its pool of resources, India's share in global value chains must increase, Sitharaman said. "Manufacturing must increase. With the help of policies, India must increase its share in global manufacturing value chains. We need to have greater sophistication in product manufacturing, and we need to see how best this can be given policy support."