Recent data from the Ministry of Statistics had indicated that the share of private sector investment in India has dropped to 11-year lows. As the Govt undertakes key measures to boost consumption and even increased public sector capex spend, this dip definitely indicates a shift in investment trend.
However, speaking to Financial Express, in an exclusive conversation, the Finance Minister is optimistic about a pick-up in the pace of investment going forward.
FM says clear signs of pick up in private investment
According to Finance Minister, Nirmala Sitharaman, “at least in the last six months, there is a clear sign that private investments and capacity expansion are happening.”
That said, she pointed out that the quantum of investment needs to be seen in perspective of the global headwinds, “The global challenges remain the same, if not aggravated. Indian industry is seeing domestic demands in some areas, in some sectors, and investments have started. Yes, there is definitely surplus cash with the private industries, and they’re probably earning passive income. But we can see signs of change.”
The Finance Minister went on to highlight the overall vibrancy in the economy, “There is a buoyancy in the economy, which cannot be overstated. Had it been absent, you wouldn’t have remained where you are (in terms of growth), with institutions periodically updating their forecasts (S&P has recently revised India’s FY26 growth estimate upward to 6.5%).”
Economic growth despite global challenges
Speaking at the pace of economic growth in the country, the Finance Minister pointed out that, “Of course, we would like to have higher growth, even 10%, and we are only at 6.4% (gross value added in FY25). But it’s still 6.4% and not 2-2.5%, which is where Europe, and even some of the Southeast Asian countries, are. So I’m not gloating at this number, but to repeatedly lament it is (uncharitable) given the global scenario.”
She further elaborated about the economic progress and pointed out that “countries, which are known for exports, are no longer able to grow with such a strategy. At this time, Indian exports are doing comparatively well”