India’s Finance Minister Nirmala Sitharaman turned 64 on 18 August and the country’s finance sector could not find a better occasion to recollect some her best economic decisions. As the finance minister in the BJP government, Sitharaman has been credited for several economic reforms. Here is what finance sector insiders say.
Sarvjeet Virk, Co-founder and MD, Finvasia says that the Finance Minister is a visionary, there isn’t a shred of doubt there. “A few of her stellar achievements include focus on building digital rails for doing business is phenomenal. From supporting the evolution of UPI to setting up OCEN and now ONDC, as well as launching e-Rupi, the seeds that she has sown will have a major impact for corporations, MSMEs and the masses alike. This is her biggest achievement, which will ensure that we become a USD 5 Trillion economy in the near future.” Virk adds, “She helped setup the National Infrastructure Pipeline (NIP) as well as the creation of Development Financial Institutions (DFIs), which play a crucial role in funding large-scale projects. These initiatives will ensure employment generation, capacity building as well as keep economic progress on track as the nation enters the Amrit Kal.
Shailendra Singh, MD & CEO, BOB Financial says that she has been one of the most influential Finance Ministers that the country has had in the recent past. “Her reforms have been equally focused on developing both India and Bharat, from setting up of IFSC to the recent agricultural finance reforms. Her most important contribution, however, remains the way in which the country managed the finances during and post covid.”
Ravi Singhal, CEO, GCL Broking says that the Finance Minister announced plans to allow direct listing of both listed and unlisted Indian companies on IFSC exchanges. “The country's existing legal framework does not allow direct listing of shares of Indian-incorporated companies on foreign stock exchanges. The only avenues for Indian incorporated companies to access the stock markets of foreign countries are the American Depository Receipts (ADR) and Global Depository Receipts (GDR) schemes. This move, proposed in May 2020, would facilitate access to global capital and improve valuation opportunities for Indian companies.”
Sidhavelayutham M, Founder & CEO, Alice Blue says, “Under the leadership of Finance Minister Nirmala Sitharaman, a sequence of impactful reforms has been initiated, significantly molding the economic landscape of India. Her commitment to propelling growth, amplifying investments, and nurturing economic resilience is underscored by three prominent endeavors. Firstly, the response to the pandemic introduced the "Atmanirbhar Bharat" (Self-Reliant India) package, which accentuated a comprehensive strategy to rejuvenate diverse sectors through financial backing, policy transformations, and structural modifications.”
He adds, “The streamlining of the Goods and Services Tax (GST) framework, with the intention of simplifying taxation and alleviating compliance burdens, has paved the route for smoother business operations and heightened revenue generation. Lastly, the Production-Linked Incentive (PLI) scheme, spanning across multiple sectors, has garnered investments and fortified manufacturing capacities, aligning harmoniously with the aspiration of positioning India as a global manufacturing nucleus. These collective reforms stand as a testament to Minister Sitharaman's strategic acumen and unwavering dedication to nurturing sustainable economic advancement.”
Gaurav Bhargava, founder and CEO of GaiaBay says that the government's reform measures under the leadership of Finance Minister Nirmala Sitharaman reflect a forward-looking and growth-driven approach. “Among the notable reforms, the Production Linked Incentive Scheme (PLI) stands out, as it infuses INR 1.7 lakh crore into 14 sectors, bolstering scalability to meet global demand effectively. Furthermore, the government's commitment to enhance the investment climate in India has manifested through strategic initiatives. The implementation of Goods and Services Tax (GST) has streamlined the business landscape, promoting ease of doing business. Corporate tax rate cuts, along with the Insolvency and Bankruptcy Code, have contributed to addressing bad loans and improving fiscal resilience.”
He adds, “The recapitalisation and consolidation of public sector banks signify a proactive stance towards strengthening financial institutions. The liberalised foreign direct investment (FDI) and simplified foreign portfolio investment (FPI) policies underscore India's commitment to fostering international economic collaboration. The National Monetisation Pipeline serves as a compelling incentive for businesses to engage with India. The diverse range of reforms collectively positions India as a favourable destination for investment and growth.”