Manufacturing sector has to grow in double digits to achieve 5-trillion dollar economy: Nirmala Sitharaman

New Delhi, Feb 1 (KNN) The Finance Minister Nirmala Sitharaman on Monday said that to achieve a 5-trillion dollar economy, our manufacturing sector has to grow in double digits on a sustained basis.

She said this while presenting the Union Budget 2021-22 in the parliament and added ''Our manufacturing companies need to become an integral part of global supply chains.''

The Minister further said that the Government has committed Rs 1.97 lakh crore for PLI schemes covering 13 sectors and further seven textile parks will be launched over three years.

She also proposed to update the definition of small companies to be raised up to crore fr0m Rs 50 lakh net worth.

Sitharaman also said that a bill will be introduced to set-up a development finance institution (DFI), capitalised with Rs 20,000 crore. Rs 5 lakh crore will be lent by DFI in three years’ time. An asset monetisation dashboard will be created to provide clarity to investors. Further the Railways will monetise dedicated freight corridors.

She further informed that there is a sharp increase in capital expenditure to Rs 5.54 lakh crore up 34.5 per cent YoY adding ''This was a key ask of the markets for reviving growth.''

The Minister also informed that the Government has set aside Rs 35000 crore for COVID-19 vaccination. The private sector may be kept out of vaccination efforts it appears, a disappointment for them.

''At a blended cost of Rs 255/dose (in the first phase), that will cover 2 doses of the vaccine for 68.6crore people in FY22. This can vary if the cost per dose goes up/down,'' she added.

She also proposed increasing Foreign Direct Investment (FDI) limit in insurance to 74 per cent with safeguards.