Industrial activities may gather further momentum on rise in govt capex, vaccination drive: Kant

Industrial activities in India are expected to gather further momentum on account of an increase in government capital expenditure, accelerate the COVID-19 vaccination drive, and resolute push to long-pending reforms, NITI Aayog CEO Amitabh Kant said on Tuesday.

Addressing a virtual event organised by the UK India Business Council, Kant further said India did suffer a massive impact due to COVID-19 across the economy and society.

"Fiscal, financial and long-term structural reforms were adopted which promoted a rapid V-shaped recovery... Industrial activities are expected to gather further momentum on account of the increase in government capital expenditure, accelerate COVID-19 vaccination drive and resolute push to long-pending reforms," he said.

Kant added that India is the only country that has adopted structural reforms to expand supply in the medium to long term. India remained a preferred investment destination even while the pandemic was raging.

"Net FDI (foreign direct investment) inflow in India posted an all-time monthly high of USD 9.8 billion in November 2020," he said.

The Niti Aayog CEO said that in COVID-19 pandemic times, the role industry across sector has played is pivotal in providing innovative and engaging solutions leading to a collective and inclusive ecosystem.

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Kant said it is heartening to see the foreign businesses and institutions also actively and willingly contributing towards the Sustainable Development Goals (SDG) acceleration in India.

He added that India currently looks at aggressively expanding its renewable energy programme. The country has made a global pledge as part of the nationally determined contributions to have 40 percent of cumulative electric power installed capacity from non-fossil fuel sources.

Kant said energy is a priority area for the UK industry in India.

"We are sure that our structural and regulatory reforms would ensure a congenial business environment for global investors," he said.

Also, participating at the event, UNDP India Resident Representative Shoko Noda said UNDP has been actively supporting India to work towards the SDGs.