The Government has no business to be in business: PM Modi

Published By : Admin | February 24, 2021 | 17:48 IST
This year's budget has put forward a clear roadmap to take India back to the high growth trajectory: PM Modi
Budget focuses on the strong contribution of the private sector in India's development: PM Modi
The Government has no business to be in business: PM Modi


I had a detailed discussion with many of you colleagues ahead of the budget presentation. This budget has presented a clear roadmap to take India to a highergrowth trajectory once again. The budget also focuses on a strong private sector partnership in India's development. The budget has enunciated the scope and targets of public-private partnership with clarity. Disinvestment and asset monetization are an important aspect of this budget.


When public sector enterprises were introduced in the country, the time was different and the needs of the country were also different. There is always scope for improvement in the policies, which were right for the country 50-60 years ago. Today, when we are carrying out these reforms, our biggest goal is to ensure proper use of the public money.

There are several loss-making public sector enterprises. Many of them have to be supported through tax payers’ money. In a way, the money, which is the rightful due of the poor and the youth bubbling with aspirations, has to be put into the activities of these enterprises and as a result it puts a lot of burden on the economy also. The public sector enterprises don’t have to be run just because they have been there for several years and were someone’s pet projects. I can understand the need if public sector enterprises are meeting the needs of a particular sector or have strategic importance.

It is the responsibility of the government to give full support to the enterprises and businesses of the country, but it is not necessary and feasible in today’s era that the government should run the enterprises and continue to own it.Therefore, I say the government has no business to be in business. The focus of the government should remain on the welfare and development projects of the people. The maximum energy, resources and capacity of the government should be employed for welfare works. When the government starts doing business, it causes severe losses.

There are several hurdles before the government in the decision making process. The government lacks the courage to make commercial decisions. Everyone is afraid of allegations and legal implications. That’s why there is a thinking that let it continue the way it is, because my responsibility is for a limited time. Whosoever follows me, will take the call. Therefore, he does not take the decision and the status quo prevails.

You also know it very well that one can’t run a business with such an approach. There is another aspect to it which is when the government starts doing business the scope of its resources gets shrunk. The government does not have a shortage of the finest officers, but they are basically trained to run the government administrations, to ensure compliance of policies and rules, to emphasize the welfare of the people and to formulate necessary policies for them. They are trained in these things and they have expertise in it also. They have come up so far after working among people for a long period. Such works are of great importance in such a huge country.

But when the government starts doing business, it has to withdraw such promising officers from those positions and shift them to a new territory. In a way, we do injustice not only to their talent, but also to that public sector enterprise. As a result, the person is harmed and the enterprise is lost.And, therefore, it harms the country in many ways. The endeavour of our government is to improve the quality of life of the people and also to reduce the unnecessary government interference in the lives of the people. That is, there is neither shortage nor influence of government in life.


Today, the country has a lot of under-utilized and un-utilized assets under the control of the government. With this concern in mind, we have announced the National Asset Monetisation Pipeline. We have set a target of monetizing about 100 such assets in the fields of oil, gas, ports, airports, power etc.These assets are estimated to have investment opportunities worth Rs 2.5 trillion. And I would like to say that this process will continue in future. The mantra with which the government is moving ahead is monetise and modernise.

When the government monetizes a particular asset, it is replaced by the private sector of the country. The private sector brings in investment as well as the best global practices. It brings in top quality manpower and transforms the management. It further modernizes things and the entire sector is modernized. It also leads to rapid expansion of that sector and creates new job opportunities also. Monitoring is equally important so that the entire process remains transparent and according to the rules. That is, we can further increase the efficiency of the entire economy through monetizing and modernizing.


The amount received following the government’s decisions can be used in the welfare schemes. The money that comes from monetisationof assets and privatization is used in making homes for the poor, building roads in villages, opening schools and providing clean water to the poor. There are so many services related to the common man. Even after so many years of independence, there are such shortcomings in our country. Now, the country cannot wait for long.

Our priority is to fulfill the basic needs of the common citizen of the country. The government is working expeditiously in this direction. Therefore, every decision relating to monetisationof assets and privatization will help empower the citizens of the country, whether it is the poor, the middle class, the youth, women, farmers orlabourers. Privatization also provides better opportunities to the competent youth and they get more opportunities to show their talent.


You will find transparency, accountability, rule of law, parliamentary oversight and strong political will today while making every enterprise efficient. Our intention is clearly visible in the new policy announced for public sector enterprises in this budget.

The government is committed to privatization of all other PSEs, apart from fourstrategic sectors. We've also made it very clear that there should be bare minimum PSEs in the strategic sector. This policy will help in selecting individual companies with the medium term strategic approach beyond the annual disinvestment targets.

This will also create a clear roadmap for investments. This will create new investment opportunities for you in every sector and also have immense employment potential in India. And I would also say that these are all valuable assets. These enterprises have served the country a lot and are full of great potential in the future also. We have seen many times that when management changes, units touch new heights. All of you should not assess these enterprises from their present state of affairs, but look at the hidden future prospects. I see their bright future vividly.


Today, when our government is moving in this direction with full commitment, the implementation of the policies involved is equally important. It is very essential to ensure transparency, competition, perfect processes and stable policies. We will have to learn from the world’s best practices for proper price discovery and stakeholder mapping with a detailed roadmap. We have to see that the decisions that are being taken are beneficial to the people and also help in the development of that sector.


Many of you had put forward a few suggestions like tax improvement in sovereign and infrastructure funds during the Virtual Global Investors Summit in December. You have seen that it has been addressed in this Budget. You must be experiencing the speed of working in the country. We have formed an Empowered Group of Secretaries to speed up processes and address investors issues rapidly. Similarly, based on a number of suggestions, we have also created a single point of contact system to help large investors in every step.


Over the years, our government has continuously undertaken reforms to make India an important destination for business. Today, India is equipped with one market-one tax system. Today, the companies in India have the best entry and exit means. Compliance related complexities in India are being continuously improved. The problems related to logistics are being addressed. Today, the tax system in India is being simplified and there is emphasis on transparency. India is among the countries where the rights of taxpayers have been codified. Labor laws have also been simplified now.


The sky’s the limit for new opportunities in India for our foreign colleagues who are taking part in this webinar. You are also aware about the unprecedented reforms India has carried out in its FDI policy. Investors are enthusiastic about India in view of the FDI friendly environment and incentives like Production Linked Incentives (PLIs). This is clearly evident in the record FDI Inflow in the past few months. Today, the ease of doing business is not confined to the central government alone, but also in our states where there is a healthy competition. This is a huge transformation.


There is rapid progress in work related to modern infrastructure and multimodal connectivity to make India self-reliant. We are working on a Rs 111 trillion National Infrastructure Pipeline to upgrade our infrastructure in the next five years. It also has an investment potential of about Rs. 25 trillion for the private sector. These infrastructure projects are also going to promote employment and demand in the country. I also realize that many Investors are planning to open their first office in India.

I welcome all the friends and I suggest that the International Financial Centre in GIFT City will be of great help to you. The centre will be governed under the internationally comparable regulatory framework. It can be a great base to work for you. We are working fast to provide many such plug and play features in India.


This spell will start a new chapter in India's development journey. The decisions that have now been taken, the goals towards which the country is moving, will further enhance the confidence of the entire private sector. These expectations of the world's largest young country are not only from the government but also from the private sector. These aspirations have brought a very big opportunity for business.

Let us all use these opportunities andcontribute to building Atmanirbhar Bharat for a better world. I thank you wholeheartedly for joining this dialogue today in such a large number. You have rich experience of the country and the world. Your suggestions will help us to move these things at a faster pace. This is my request to you and I need your immediate help and a roadmap for early implementation of everything that is outlined in the budget, the policy framework of the government and the issues that I have tried to explain.I am confident that your experience, knowledge and potential can create a new world with India’s hopes and aspirations. I once again thank all of you and await your suggestions.

Many thanks!


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Cabinet approves constitution of world’s largest grain storage plan in cooperative sector
May 31, 2023

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, today approved the constitution and empowerment of an Inter Ministerial Committee (IMC) for facilitation of the “World’s Largest Grain Storage Plan in Cooperative Sector” by convergence of various schemes of the Ministry of Agriculture and Farmers Welfare, Ministry of Consumer Affairs, Food and Public Distribution and Ministry of Food Processing Industries.

In order to ensure time bound and uniform implementation of the Plan in a professional manner, Ministry of Cooperation will implement a pilot project in at least 10 selected Districts of different States/ UTs in the country. The Pilot would provide valuable insights into the various regional requirements of the project, the learnings from which will be suitably incorporated for the country-wide implementation of the Plan.


An Inter-Ministerial Committee (IMC) will be constituted under the Chairmanship of Minister of Cooperation, with Minister of Agriculture and Farmers Welfare, Minister of Consumer Affairs, Food and Public Distribution, Minister of Food Processing Industries and Secretaries concerned as members to modify guidelines/ implementation methodologies of the schemes of the respective Ministries as and when need arises, within the approved outlays and prescribed goals, for facilitation of the ‘World’s Largest Grain Storage Plan in Cooperative Sector’ by creation of infrastructure such as godowns, etc. for Agriculture and Allied purposes, at selected ‘viable’ Primary Agricultural Credit Societies (PACS).

The Plan would be implemented by utilizing the available outlays provided under the identified schemes of the respective Ministries. Following schemes have been identified for convergence under the Plan:

(a) Ministry of Agriculture and Farmers Welfare:

Agriculture Infrastructure Fund (AIF),
Agricultural Marketing Infrastructure Scheme (AMI),
Mission for Integrated Development of Horticulture (MIDH),
Sub Mission on Agricultural Mechanization (SMAM)
(b) Ministry of Food Processing Industries:

Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME),
Pradhan Mantri Kisan Sampada Yojana (PMKSY)
(c) Ministry of Consumer Affairs, Food and Public Distribution:

Allocation of food grains under the National Food Security Act,
Procurement operations at Minimum Support Price
Benefits of the Plan

The plan is multi-pronged – it aims to address not just the shortage of agricultural storage infrastructure in the country by facilitating establishment of godowns at the level of PACS, but would also enable PACS to undertake various other activities, viz:
Functioning as Procurement centres for State Agencies/ Food Corporation of India (FCI);
Serving as Fair Price Shops (FPS);
Setting up custom hiring centers;
Setting up common processing units, including assaying, sorting, grading units for agricultural produce, etc.
Further, creation of decentralized storage capacity at the local level would reduce food grain wastage and strengthening food security of the country.
By providing various options to the farmers, it would prevent distress sale of crops, thus enabling the farmers to realise better prices for their produce.
It would hugely reduce the cost incurred in transportation of food grains to procurement centres and again transporting the stocks back from warehouses to FPS.
Through ‘whole-of-Government’ approach, the Plan would strengthen PACS by enabling them to diversify their business activities, thus enhancing the incomes of the farmer members as well.
Time-frame and manner of implementation

National Level Coordination Committee will be formed within one week of the Cabinet approval.
Implementation guidelines will be issued within 15 days of the Cabinet approval.
A portal for the linkage of PACS with Govt. of India and State Governments will be rolled out within 45 days of the Cabinet approval.
Implementation of proposal will start within 45 days of the Cabinet approval.

The Prime Minister of India has observed that all out efforts should be made to leverage the strength of the cooperatives and transform them into successful and vibrant business enterprises to realize the vision of “Sahakar-se-Samriddhi”. To take this vision forward, the Ministry of Cooperation has brought out the ‘World’s Largest Grain Storage Plan in Cooperative Sector’. The plan entails setting up various types of agri-infrastructure, including warehouse, custom hiring center, processing units, etc. at the level of PACS, thus transforming them into multipurpose societies. Creation and modernization of infrastructure at the level of PACS will reduce food grain wastage by creating sufficient storage capacity, strengthen food security of the country and enable farmers to realise better prices for their crops.

There are more than 1,00,000 Primary Agricultural Credit Societies (PACS) in the country with a huge member base of more than 13 crore farmers. In view of the important role played by PACS at the grass root level in transforming the agricultural and rural landscape of Indian economy and to leverage their deep reach up to the last mile, this initiative has been undertaken to set up decentralized storage capacity at the level of PACS along with other agri infrastructure, which would not only strengthen the food security of the country, but would also enable PACS to transform themselves into vibrant economic entities.