FM to discuss the overall investment climate with Chief Ministers and Finance Ministers of States

On 15.11.2021, Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman met with Chief Ministers and Finance Ministers of States/Lt. Governors of UTs to discuss how to improve the country’s post-pandemic investment climate. Shri Pankaj Chaudhary, Union Minister of State for Finance, mentioned this in a written response to a question in the Lok Sabha today.

The Minister added that the Indian government has taken tangible efforts to expand capital spending and drive infrastructure and investment-led growth, which will result in increased job opportunities, market access, improved quality of life, and empowerment of vulnerable groups. During the meeting, it was also discussed that states have a monetizable asset base that may be used to increase cash available for new infrastructure and other important social sector needs, according to the Minister.

States/UTs also raised a number of issues, according to the Minister, including the need for a Standard Operating Procedure on environmental/forest clearances and enhanced powers for states; uniform coastal zone regulations framework; strengthening of Dispute Resolution Mechanism to strengthen PPP ecosystem; strengthening of banking infrastructure to address gaps in banking penetration and credit-deposit ratio in states; and strengthening of banking infrastructure to address gaps in banking penetration and credit-deposit ratio in states. In India’s North East, a state-specific trade strategy is required, as is the development of agri-specific infrastructure across the country.

On the 17th and 18th of November 2021, a two-day conference on ‘Creating Synergies for Seamless Credit Flow and Economic Growth’ was held, with participation from numerous industries, banks, and financial institutions, according to the Minister. The conference focused on the flow of credit into various industries and the need to encourage lending in the productive segments of the economy.