- Tuesday, March 04, 2025
By: Shubham Ghosh
Indian prime minister Narendra Modi on Tuesday (7) appealed to India Inc to increase investment in tandem with the government’s decision to raise capital expenditure (Capex) and take advantage of the scopes that have been unveiled by the federal budget 2023-24 presented on February 1.
The budget was the last full-fledged one before next year’s general elections.
Addressing the 10th webinar on budget in New Delhi, Modi said the government has increased outlay on Capex to a historic high of Rs 10 lakh crore (£102 billion).
He further said that India is being described as a bright spot of the global economy and the country has attracted the highest foreign direct investment in the country in the year 2021-22 with major part going into manufacturing sector.
“I would also call upon the private sector of the country to increase their investment just like the government so that the country gets maximum benefit from it,” he said while talking about the key proposals of the budget.
He stressed that applications are continuously pouring in to avail of the Production Linked Incentive (PLI) scheme which makes India an important part of the global supply chain.
Dwelling on the tax-related post-budget narratives, Modi said as opposed to the past, the tax burden has come down significantly in India due to the Goods and Services Tax, reduction in income tax and corporate tax.
This, he said, has resulted in better tax collection as the gross tax revenue was about Rs 11 lakh crore (£112.2 billion) in FY14, which can rise to Rs 33 lakh crore (£336.8 billion) in 2023-24, an increase of a whopping 200 per cent.
The number of individual tax returns filed increased from 3.5 crore (35 million) to 6.5 crore (65 million) from 2013-14 to 2020-21, he said.
“Paying tax is such a duty, which is directly related to nation building. The increase in the tax base is proof that people have faith in the government, and they believe that the tax paid is being spent for public good,” he said.
He said Amrit Kaal Budget laid the roadmap of an all-inclusive financial sector for India’s growth and India is moving with new capabilities, the responsibility of those in the financial world of India has increased.
Modi asked the banking sector that they have a robust financial system of the world and a banking system that is in profit after being on the verge of collapse 8-10 years ago.
Also, he said, there is a government that is taking policy decisions with courage, clarity and confidence.
“Today, the need of the hour is that the benefits of the strength in India’s banking system should reach the maximum number of people,” he said.
(PTI)
