Finance Minister Nirmala Sitharaman emphasised the importance of public-private partnerships for capital expenditure growth in the coming years. Speaking at the Kautilya Economic Conclave, the Finance Minister said that the private sector investment is beginning to see opportunities in India, with interest especially reviving in public-private partnership (PPP) projects.
“I can see private investment beginning to see opportunities. Of late, I am seeing a greater interest in India for public and private investments to grow in sizeable numbers,” she added.
Sitharaman said that in the last five years, there has been a significant increase in public expenditure. The Finance Minister stated that the government remains committed to continuing its capital expenditure plans.
Govt capex plans
The Indian government has increased the capital expenditure in recent years. Earlier during the COVID-19 pandemic also the government also focused on investing in infrastructure to maintain the economic momentum,
For the fiscal year 2025-26, the government has set a total capital expenditure target of Rs 11.21 lakh crore. In the first four months of this fiscal year, the total govt capex stood at 3.47 lakh crore, up 33 per cent YoY.
“In the last five years, the capex numbers have gone significantly higher each year. The commitment for capital expenditure has only grown and even plateaued. That commitment continues,” Sitharaman said
Domestic demand to boost growth
Furthermore, the Finance Minister emphasised the impact of domestic factors and rising consumption on the country’s overall GDP growth, as well as the role of these factors in cushioning the effect of external factors.
“With the steady share of consumption and investment in the overall GDP over the years, India’s growth is firmly anchored in its domestic factors, which minimises the impact of external shocks on overall growth,” Sitharaman said.