Union Finance Minister Nirmala Sitharaman eyes “green shoots of economic recovery” after a Covid-19 drive recession in India citing IMF and World Bank projections that peg India’s GDP growth at about 9.5 percent and 8.3 percent respectively.
In her efforts to nurture further the "green shoots of recovery" to bear fruits, Sitharaman urged the states across the country to create an “investment-drive vision and investment climate to fast track growth engine for an ease of doing business for the investors”.
She said this while holding a virtual meeting with all Chief Ministers and Finance Ministers of the states to discuss ways to create a reform-focused business climate and further facilitate investments to help boost growth.
Attending the meeting, Himachal Pradesh Chief Minister Jai Ram Thakur urged Sitharaman to make provision of Rs 3000 crore in Union budget-22 and fund the Bhanupalli-Bilaspur railway line cent per cent.
Union Minister sought a collaborative growth vision for the Nation and encouraged an open exchange of ideas centered on enhancing the investment climate of the country. “This interaction would help in creating a facilitative environment for investment led growth”, she says.
She said this would be possible by a proactive approach to investment promotion and efficiencies brought about by ‘Ease of doing Business’ reforms.
Nirmala Sitharaman said economic growth has adversely been affected during the pandemic. After the first quarter of the current fiscal, the economy has picked up again and green shoots of recovery were now clearly visible.
Projections of IMF and World Bank peg India’s GDP growth to about 9.5 percent and 8.3 percent respectively, as one of the fastest growing economies, she claims.
While participating in the meeting virtually from Shimla, Chief Minister Jai Ram Thakur thanked the Union Government for providing free vaccines in the country adding that the State would have to spend about Rs. 500 crore to vaccinate its over 55 lakh eligible population.
He said in order to make the private sector as partner in development, the state government organized a 'Global Investor Meeting' in November, 2019 in which 703 MoUs worth Rs. 96,720 crore were signed. He said ground breaking of 236 MoUs regarding projects worth Rs. 13,488 crore was signed within two months of the Meet.
Chief Minister said the state has made tremendous improvement in 'Ease of Doing Business' by improving the ranking from 17th position to 7th position.
The economy of the State was adversely affected during the pandemic. During the pre-covid period, the economy of State witnessed a growth of 4.9 percent which dropped down to minus 6.2 percent during the covid-19 period. Now this growth has gone upto 5.5 percent.
Thakur said the Union Ministry of Finance has given its in principle approval to Rs. 2095 crore ADB Tourism Infrastructure Development Project. He urged Sitharaman to get this project approved from the Screening Committee of Economic Affairs Department as this would give much needed boost to tourism activities in the state.
To strengthen air connectivity in the state, he requested Sitharaman to make a provision of about Rs. 3000 crore for construction of Greenfield Airport at Mandi in the next year's Union Budget and provides funds for construction of National Highways in the state.
He said the Centre and the State Governments were bearing the cost of Bhanupalli-Bilaspur rail line in 75:25 ratio. But the center should bear the cent percent cost of the proposed Railway line considering its strategic importance, he told Sitharaman
Jai Ram Thakur said state has succeeded in harnessing about 10,948 MW power potential till date. The projects worth about 5497 MW had been allocated to the private sector for execution. One Time Amnesty Scheme for giving a boost to the power sector has proved a boon to the power sector in the state, he said
The virtual meeting was attended by Union Ministers of State for Finance Pankaj Chaudhary and Bhagwat Karad, besides Secretaries of Government of India line ministries, chief secretaries and finance secretaries of states.
From Himachal side, Additional Chief Secretary Industries R.D. Dhiman, Additional Chief Secretary Finance Prabodh Saxena, Additional Chief Secretary Excise and Taxation J.C. Sharma, Secretary Jal Shakti Vikas Labroo, Secretary Health and Horticulture Amitabh Avasthi, Advisor Planning Dr. Basu Sood and other officers also attended the meeting.
(Kuldeep Chauhan is Editor and administrator, HimbuMail, voice of Himalayan People)
