- ‘I will again tell the Indian industry not to let disappointment linger. Go ahead with new energy,’ the PM said
- Modi reiterated that a company’s lack of success doesn’t mean it is necessarily the outcome of a conspiracy or greed
In a tacit acknowledgment of the depressed sentiment in the country, Prime Minister Narendra Modi on Monday reached out to India Inc., seeking its help to revive the economy.
“At the beginning of the new year, today from this platform, I will again tell the Indian industry not to let disappointment linger with you. Go ahead with new energy. Whichever corner of the country you go to, for your expansion, the Indian government will walk with you,” Modi said at the centenary celebration of the Kirloskar Group in New Delhi.
Modi toned down the anti-corruption drive and reiterated that a company’s lack of success doesn’t necessarily mean that it is the outcome of a conspiracy or greed. Hence, it was crucial to prepare a way for such entrepreneurs and the Insolvency and Bankruptcy Code set the basis for this, he said, urging industry to move ahead without fear.
In a similar tone, the Prime Minister last month said that his government had corrected past weaknesses of the economy and urged industrialists to “invest boldly”, promising protection against wrong actions in genuine commercial failures.
Modi’s comments assume significance as they come in the middle of a deep downturn, led by sluggish consumption demand and subdued private investment. While the Center has taken a slew of measures in the last five-six months to bring India back to a high-growth trajectory, including a sharp cut in corporate tax, these are yet to yield significant results.
The government has undertaken several reforms in the last five years and has continued to listen to industry and address its concerns, Modi said on Monday, adding that massive tax reforms introduced by his government include ending Inspector Raj and implementing the goods and services tax. At present, the government is trying to increase efficiency, transparency and accountability by ending the human interface between tax departments and taxpayers. Besides, in case of failure to adhere to “small” provisions under the companies law, offences have been decriminalized.
“Indian industry, in a transparent environment without fear, without hindrance, move ahead, create wealth for the country, create wealth for ourselves. This has been the endeavour of all of us. It has been a constant effort to liberate Indian industry from the trap of laws,” said the Prime Minister.
Modi urged industry to produce world-class products, promising that the government would continue to support innovation.
A rising number of young entrepreneurs and a growing business culture meant that industrialists were no longer restricted to what was once known as the Bombay Club.
“If such a club is formed today, it will be called the Bharat Club, in which different sectors, old veterans and new entrepreneurs, will all be represented,” said Modi.
With regard to innovation, he said real-time payments system UPI and the LED bulb distribution scheme UJALA have gained immense popularity.
“In the last five years, there has been an environment in the country to work with integrity, to work with complete transparency. This environment has given the country the courage to set big goals, and achieve targets on time,” Modi said, reiterating the government’s goal to turn India into a $5 trillion economy by 2024-25.