BS EDIT: Will India's private sector step up?
Government’s capital push
Capex rose from 1.67% of GDP in FY20 to 3.4% in FY25
Goal: Support growth & shift investment to private firms
Private investment remains weak
Twin balance sheet issue resolved, but firms still hesitant
Corporate & bank finances are strong, yet investment lags
Calls for private sector action
PM Modi: Firms must seek global opportunities & take risks
FM Sitharaman: Private players must identify investment barriers
Government’s investment push
42,000+ compliances removed, 3,700+ laws decriminalised
Deregulation Commission planned to streamline rules
Why are firms cautious?
Global uncertainty post-Trump’s return
China’s overcapacity limits India’s export growth
Manufacturing capacity at 75%, not enough to trigger expansion
Exports & investment growth
In the 2000s, exports rose from 15% to 25% of GDP, boosting investment
Now at 18.7% (2019), still below peak
Govt easing duties, but more export reforms needed