Industry Is Resetting To Be Competitive: Sitharaman

As a most unusual year comes to an end, finance minister Nirmala Sitharaman is confident that the government’s interventions to revive the economy are working and says reforms will continue with a strong focus on infrastructure. Excerpts from a conversation with Sidhartha, Surojit Gupta and Rajeev Deshpande

- Sidhartha, Surojit Gupta and Rajeev Deshpande

TOI INTERVIEW

There have been some positive numbers over the last two days, and last week you spoke of near-zero growth this year. Do you expect a strong bounce-back in the second half and what are the reasons?

A steadily positive message is coming, whether it’s increased GST collections, car and two-wheeler figures, exports, FDI inflows, forex reserves, today’s PMI numbers, or the rural economy sustaining its positive growth. All this gives the hope it is sustaining, but on a note of caution, I will still say I am waiting to get on firmer ground and talk with a lot more certainty.

What would looking for a firmer footing mean?

Continuation of the figures next month as well. Last month, the argument was of pent up demand. October did not have pent up demand and there was adhikmaas (seen to be inauspicious for purchases). Since Diwali is in November, people may say it was due to the festival. I want to see steady growth even with these socalled exceptions getting rationalised.

Are you looking more at domestic demand to sustain growth?

Rise in exports is steady. When I speak to industry, they clearly say there is a lot of reset in industry from the point of view of running businesses with less than more — less of capital, manpower, effort and certain inputs. Industry is realising competitiveness is a strong message. With that, they can reach newer markets, which probably have space that has been vacated.

Does this manpower-driven efficiency increase the challenge for the Centre as far as jobs are concerned?