FM exhorts industry to shun hesitation, partner with govt to push growth

Finance Minister Nirmala Sitharaman on Tuesday exhorted the industry to shun hesitation and be a partner in driving growth, saying the government has already initiated several measures and is willing to take more steps.

The government has already reduced corporate tax rate, removed Minimum Alternate Tax (MAT) and abolished dividend distribution tax (DDT), she said while addressing the industry leaders here.

The approach has been "we shall spend on asset creation and it is the cascading effect of this spend which is going to help the industry. So we expect you to be... the engine to pull the economy forward", the finance minister said.

She added that "in today's conditions, it cannot be just the govt spending which can pull this economy towards that growth which all of us want. I strongly believe industry today will have to come out of that hesitation, which you held and rightly in your mind. But I think it's time now to come out of the hesitation. I called it self-doubt sometime back".

Sitharaman signalled that the government is willing to do more in terms of necessary measures to prop up the economy.

"We have done what whatever little we can, we are not closing the doors, we are still ready to do and even much more. But I want it to be a meaningful intervention from the government rather than rush to do something which may not be necessary at all for the government," she said.

Talking about the measures taken to help the industry, the minister listed some of them like corporate tax rate cut and removal of Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT).

She said, "It is now time for all of us to pull our weight along, make sure that the economy has support of each one of us, where each one will have to become the engine for pulling this economy up. After all, the spirit of enterprise is yours, we are here to facilitate."