By Martin Shwenk Leade

Copyright indiatimes

Source: Nirmala Sitharaman Office

The Central government has sanctioned over Rs 3.6 lakh crore as 50-year interest-free loans to States, and incentivised increased capex under the Scheme for Special Assistance to States for Capital Investment (SASCI). With this endeavour, 22 states of India have recorded more than 10% growth in capital expenditure from their own resourcesDelivering a keynote address at CII’s GCC Business Summit in Andhra Pradesh, Finance Minister Nirmala Sitharaman said,”…the Centre, under the Scheme for Special Assistance to States for Capital Investment (SASCI), has sanctioned over Rs 3.6 lakh crore as 50-year interest-free loans to States, and incentivised increased capex, resulting in 22 states recording more than 10% growth in capital expenditure from their own resources.”Highlighting the government’s push to address infrastructure and logistics bottlenecks, the finance minister stated that the capital investment has increased from 1.7% of GDP in FY14 to 3.2% in FY25, with effective capital expenditure at 4.1% of GDP.”Over the last 11 years, 88 airports have been operationalised, 31,000 km of new rail tracks laid, metro networks expanded over fourfold, port capacity doubled and the National Highway network has extended by 60%,” she added.’India’s GCC story is a transformational journey’Live Events”Global Capability Centres (GCCs) have a far-reaching impact on economic growth, competitiveness and human capital development. India’s GCC story is a transformational journey,” Sitharaman said.Speaking about India’s GCC landscape, she said, “Today, they are innovation hubs, driving R&D, generating intellectual property and patents and enabling sustainable growth for global enterprises. By providing long-term competitive advantage to global organizations, GCCs are cementing India’s position as the world’s GCC hub.”Prior to July 2024, the government aimed to establish world’s 50% of Global Capacity Centres (GCC) in India, and 50% of foreign GCCs must be run by Indians. “Well before the Union Budget of July 2024, it was told to me that 50% of Global Capacity Centres (GCC) of the world are to be in India and for the rest which are outside India, 50% of them are run by mostly Indians,” Sitharaman said. “Now after almost two years, GCCs have acquired an Indian flavour and that’s been going on with the same expectation and speed.”The state governments have played a critical role in deepening India’s GCC advantage and shaping an enabling policy environment. Sitharaman highlighted the way forward to maximise the contribution of states:- aligning national and state-level policies and adapting policy instruments to ensure that each state builds on its unique comparative advantage- building livability and infrastructure ecosystems – work on emergence of Tier-2 and Tier-3 cities as centres of excellence that can attract global talent, encourage corporate reinvestment- enable cities to host high-value innovation and service delivery, offering credible alternatives to Tier-1 metros.”The Central Government is committed to partnering with states in this endeavor, by building capacity and addressing ecosystem needs,” Sitharaman said. “In the 2025 Budget, we proposed a national framework to guide states in promoting GCCs in emerging Tier-II cities.”The government has released a Model State GCC Framework that provides a clear roadmap for States to scale up their efforts, attract investment and build resilient ecosystems. By working together – Centre, States, industry associations like CII, and global companies.”We can ensure that India’s GCC growth is both broad-based and future-ready. This will not only consolidate India’s leadership in the GCC landscape, but also create new opportunities for innovation, job creation and inclusive regional development, eventually contributing to the vision of Viksit Bharat by 2047,” Sitharaman said.Add as a Reliable and Trusted News Source Add Now!
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