India Inc should go for more capex, says Modi

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- Concept bigger than just buying products from cottage industry

- Areas where building capacity in India itself can save forex

- Tax revenue rose from Rs11 lakh cr in FY14 to Rs33 lakh cr in 2023-24

- Individual tax returns filed increased from 3.5 cr in FY14 to 6.5 cr FY21

New Delhi: Prime Minister Narendra Modi on Tuesday urged India Inc to increase investment in tandem with the government's decision to raise capital expenditure (capex) and take advantage of the opportunities unveiled in the Budget 2023-24.

Addressing the 10th webinar on Budget, Modi said the government has increased outlay on capex to a historic high of Rs 10 lakh crore. He further said that India is being described as a bright spot of the global economy and the country has attracted the highest FDI 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, the Prime Minister said as opposed to the past, the tax burden has come down significantly in India due to GST, reduction in Income-Tax and Corporate Tax. This, he said, has resulted in better tax collection as the gross tax revenue was about Rs11 lakh crore in FY14, which can rise to Rs33 lakh crore in 2023-24, an increase of 200 per cent. The number of individual tax returns filed increased from 3.5 crore to 6.5 crore 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 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.

Giving an example of the government's support to the MSME sector, the prime minister asked the banking system to reach out to the maximum number of sectors.

“1 crore 20 lakh MSMEs have received huge help from the government during the pandemic. In this year's budget, the MSME sector has also got additional collateral-free guaranteed credit of 2 lakh crores. Now, it is very important that our banks reach out to them and provide them adequate finance,” he said.

Modi pointed out that the government’s policies related to financial inclusion have made crores of people part of the formal financial system. The government has helped fulfil the dreams of crores of youth by giving Mudra loans of more than Rs20 lakh crore without a bank guarantee, he said. For the first time, he said, more than 40 lakh street vendors and small shopkeepers received help from banks through PM Swanidhi Yojana.

The Prime Minister said that the entire world is witnessing the impact of India's fiscal and monetary policy during the Covid-19 pandemic and lauding its efforts in strengthening the fundamentals of the country's economy in the last 9 years. Recalling the time when the world looked at India with suspicion, he said that discussions on India's economy, budget and goals would often begin and end with a question.