India needs FDI to run profitable businesses: Jaitley
Finance minister Arun Jaitley on Thursday made it clear that the government is trying to bring down the taxes and provide boost to the economic activities. He also mentioned that the interest rates for sectors like housing would come down and this will give a boost to the demand in the real estate sector. Since there is focus on affordable housing too, people in the lower income groups will be given special benefits so that they can invest in a home for their families.
Jaitley also emphasised that profit is not a bad word, and the companies need to make profits in order to survive and provide employment to the citizens. His government’s focus is to combat inflation. He justified the government’s decision to further open up sectors like defence and insurance to foreign direct investment (FDI).
The country required a huge amount of resources to speed up development, and FDI will provide that liquidity. We need to revive the manufacturing sector so that the jobs are created and poverty alleviation happens faster.
He also made it very clear that the government will not have enough resources to fund social welfare programmes unless there are profits and taxes. When investment from within is inadequate, FDI is an additionality of resource. India needs profitability for economic activity.
Source- Mint
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