Modern Day 'Shalyas' Hurting Bharat's Confidence: Sitharaman at India Economic Summit | Highlights

New Delhi: At the India Economic Summit (IES) 2024, Union Finance Minister Nirmala Sitharaman addressed concerns about the impact of negative narratives brewing within India. Speaking to Republic Media Network's Editor-in-Chief Arnab Goswami , Sitharaman highlighted the role of domestic pessimism in undercutting India's progress and spirit, referring to those fostering such negative sentiments as the 'Modern-day Shalyas'. 

Sitharaman expressed frustration with voices within India that she said were “bringing down India” through undue criticism. "While the whole world observes India," she remarked, "within India, there are many Shalyas that bring your confidence down." Sitharaman's reference to Shalya—a figure from Indian mythology Mahabharata known for sowing doubt—highlighted her concern about negativity undermining India’s optimism and potential on the world stage.

In a firm appeal to citizens, Sitharaman emphasized that India's strengths and achievements are recognized not only domestically but globally. "I would appeal to everybody that these are not observations about India's strength, achievement, and further possibility of higher achievement which are made by us, but observed by everybody," she stated.

Calling for unity and trust in India's direction, the Finance Minister further urged, "We need to have confidence in ourselves. There is good leadership, there is a great understanding of how to take India forward. There will be challenges; there are questions of less burden on some, and more burden on others. We will address all of them. Be confident that we are on the right path and that we will achieve our destinations."

‘India at The Very Top at Every Reset’

When asked how the global economy might evolve in a post-Ukraine world, should the trajectory of the war come to an end, and what adjustments may be needed in economic and fiscal policies, Union Finance Minister Nirmala Sitharaman highlighted the government's commitment to prioritizing national interests while navigating a changing global landscape.

“It’s not just the Ukraine war; numerous ongoing developments require us to stay dynamic in our decision-making, with continuous resets along the way,” Sitharaman stated. She explained that resetting policies is a gradual, ongoing process, driven by both global and domestic factors. “As always, we keep India at the very top at every reset,” she added. 

‘Want more FDI, but need to be sure who exactly is bringing the FDI in’

Sitharaman at the India Economic Summit also addressed the critical issue of foreign direct investment (FDI) in India, particularly in the context of Chinese investments, highlighting the need for a balance between economic opportunities and national security.

Speaking candidly, Sitharaman stated, "We want more FDI, but we need to be sure who exactly is bringing the FDI in." She asserted that while India welcomes investments, it is crucial to ensure transparency in the sources of funding. 

"Our national interest is paramount," she stressed, underscoring that any investment that aligns with India's security and sovereignty will be welcomed, but efforts must be made to thoroughly vet and assess the origins of the investment.

The Finance Minister reiterated, "We won’t trouble any sincere investment," affirming that India remains open to foreign capital, but the layers of FDI funding must be fully transparent. "We want the screen behind the investment to be opened up," she called for, emphasizing that total transparency is essential in safeguarding both economic interests and national security. 

When Arnab asked, will the world respond differently to India as it continues to grow, Sitharaman said, "I'm not sure we'll ever in India change from being non-aligned. The expression may change. You're not going to be able to explicitly be with one group of nations as opposed to another group of nations. You are going to constantly keep friends everywhere. You need to keep friends everywhere, and why, pray, should you do that? Whether it is a unipolar world, bipolar world, or multipolar world as we face now, India's given position and India's inherent belief and geopolitical location necessitates us to be consistent in one thing, that you recognize you have friends everywhere. Circumstances may change, but your friendship and alignment with each one of them should continue. You cannot, at the cost of becoming indifferent or even alienating some group, become closer to something else or some group's selves. 

She added, "So, I think that is a position which has served India well and it will also in the future serve us well. Your bilateral is equally important as much as your multilateral. So, that position, I think, has served us well, and it will continue to serve us well”.

On Trump's Tariff Policy

When asked about Trump's tariff policy, Sitharaman responded, "Regarding the tariffs and the accusations that we are abusers of them, we can explain every tariff we’ve imposed. These tariffs are not aimed at controlling imports. However, do I have a responsibility to protect companies in India, especially those with existing capacities to produce certain goods? If we continue importing those goods, or even import them in parts and reassemble them, do we have the moral authority to undermine businesses that are growing in India and capable of producing these goods? I need to offer protection to these industries as well. At the same time, I must support industries that require imports. Imports, particularly intermediary goods, are essential and I will encourage that. I am willing to lift tariffs on them, as long as it doesn't, either intentionally or unintentionally, harm India’s capacity to produce. It’s a delicate balance I must maintain."

On PM's Approach During Cabinet Meetings

When asked about the Prime Minister's approach during cabinet meetings, Sitharaman said, “The Prime Minister's one quality which is amazing is he hears you without any disturbance. There's no phone call, there's no, all right, I've heard this a thousand times, stop it. None of that. He hears you out. He hears you out. And there are times when you go back thinking, oh my God, I shouldn't have said this. Because he has not responded to you, but you know, he already knows it or he thinks that, oh, what a foolish argument, but no, he's never said any of that. He hears you out in full.”

She added that no decision is taken in one round and with just a few people. "So, rounds and rounds of discussion and in all that, he sits through patiently. Second, after all the discussion is carried forward, again, one set of consultation, not at his level, at the level of the PMO officials who have the domain knowledge. And finally, when it is all drafted into some kind of a written form, the language is gone through so that there is no loose wording, which will be subject to any kind of (25:48) misinterpretation. And after that is when it actually comes to the cabinet", the Finance Minister told Arnab.

Moreover, she informed, "And before the cabinet, the Prime Minister has gone through the document and comes fully seized of what is in it. But even then he doesn't stop the ministers from discussing, hey, no, but you said this,  what's about it? Cross consultation, discussion, questioning one another happens.  And only then a final call is taken. But at every stage, and I'm saying this because I truly think so, believe so. And at every stage, he's done his homework. There are times when you probably are going with less homework done, but he's done his homework. This is a very difficult situation for those presenting to him."   

On Rahul Gandhi ridiculing Halwa Ceremony and trying to pull her down

“Other than attempting to pull me down, Rahul Gandhi is doing a disservice for the cause he pretends to take up. Talking about the halwa ceremony where Rahul Gandhi asked how many STs, SCs and OBCs were included... if you really intend to serve the cause of SC and others, it is not a halwa ceremony you will question that. You will do so much more to help the cause. Somewhere I feel the people around him, helping him are not putting the gravity of issues before he takes them up”, said Sitharaman. 

Upping the ante against Rahul, Sitharaman said, "Look at the way in Karnataka the Congress party has helped directly or indirectly people to claim farmers' lands in the name of the Waqf Board. Where is the Congress party and where is the Bhatta-Parsaul, where is Rahul Gandhi when it comes to Karnataka's farmers? The gravity of the cause that he takes is momentary."

‘India’s Opposition Needs Leaders'

"My worry is that India's Opposition, I'm sorry to say this...I don't want to pull down anybody but India's Opposition needs leaders who can stand up in the Parliament and question the government.  I want an  Opposition leader who sits to ask the question. The moment he gets up, all of us say, Oh my God, let's see what he is going to ask now."

India Economic Summit 2024

The Republic Media Network’s India Economic Summit , now in its fourth distinguished edition, is underway at the Network’s grand HQs, proudly hailed as the largest news centre in Asia. This event, held under the visionary theme "Viksit Bharat: Bullseye," serves as a beacon of economic ambition, illuminating India's aspirational path to a $50 trillion economy by 2047.

Bringing together a distinguished assembly of policymakers, business magnates, and industry experts, the summit is a platform for forward-thinking dialogue on India’s future as a global economic powerhouse. Discussions will delve into transformative ideas around policy innovation, infrastructure development, and inclusive growth to shape a vibrant, self-reliant India.