"No Discussion Yet On FDI From China": Nirmala Sitharaman Budget Exclusive

Days after the first budget of Modi 3.0 was unveiled, Finance Minister Nirmala Sitharaman speaks to NDTV's Editor-In Chief Sanjay Pugalia. The Union Budget 2024-25 rewarded key NDA allies, relieved taxpayers under the new regime and focused on creating job opportunities for youngsters.

In a big announcement for working professionals, Ms Sitharaman had said that the Centre will give one-month's salary to those joining their first job. No Changes were made to the old tax regime, which a large section of professionals opt for.

Budget 2024 also proposed to raise the limit of exemption of capital gains on some financial assets to ₹ 1.25 lakh per year. 

Here the key highlights from the interview: 

*Each budget is a challenge for its contents but equally it is a challenge to craft the language of the budget. It has been the message of the Prime Minister that the budget should be simple, so that anyone can understand. It should be in simple language. 

*This change is part of Prime Minister Narendra Modi's vision for budget communication, she added. 

*On criticism that the budget focused on specific states, the finance minister said no state is being denied its due support. "States are receiving allocations as they have in the past. No state is being left behind," she said.

*Regarding South Indian states, Ms Sitharaman acknowledged their developmental challenges and emphasised the role of the Finance Commission in addressing these issues. They should seek funds for developmental purposes based on their achievements and challenges, she said.

*She underscored that the 2024 Union Budget focused on reducing the national debt without stifling economic growth.

*Elaborating on fiscal prudence, she said that borrowing is not a great way to reduce budget. Debt should be reduced without affecting the growth, she said. 

* "We believe it is for SEBI to do that regulation in the market, just like they have been voicing concerns about the speculative activity happening in the F&O market."

*"We leave it to SEBI to give a soft-touch regulatory approach to F&O and cash markets."

*The goal is not merely to meet deficit targets but to manage debt through asset creation and efficient borrowing practices, she said.

*On financial regulation, particularly concerning derivatives, Ms Sitharaman acknowledged the growing interest among Indians in these investment vehicles. "We aim for SEBI to regulate this sector, but our intent was to indicate a soft-touch regulatory approach," she explained.

*Speaking on Foreign Direct Investments from China, the finance minister said there has not been any discussion in front of her. In some departments, there have been talks of giving visa to some sections, she added.

*I feel there have been investments in private for two years, the finance minister said. Investment has begun and expansion of capacity is underway, she added.

*I feel there have been investments in private for two years, the finance minister said. Investment has begun and expansion of capacity is underway, she added. 

*On reduction in prices of petroleum products, Ms Sitharaman said states will have to get together and approve in GST council. 

*"If they fix the rate and they all come together and decide that GST will include petroleum products, then we can implement it immediately."

*The Finance Minister also said that there is no sector out of the government's consideration for foreign direct investment (FDI).

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