Finance Minister Nirmala Sitharaman on Thursday urged Indian industry to step up investments and expand capacities, saying the government has already delivered on reforms and policy measures expected by businesses.
Speaking at the IFQM Symposium, the minister underlined that Prime Minister Narendra Modi’s government has not relented on reforms or ignored industry demands.
She called on India Inc to partner with the government not only in skilling youth but also through year-round engagement instead of restricting consultations to the Budget season. This comes a day after the minister said that the new reforms are set to leave Indian economy with Rs 2 lakh crore cash in hand.
“Today I have a basket of things on which the government has delivered... I hope there is no more hesitation for the industry to invest further, to expand capacities, produce more in India, and what else is required by the government to do, spell them out,” Sitharaman said.
Also Read: Indians to soon have Rs 2 lakh crore more cash in hand from GST cuts, says Nirmala Sitharaman
The finance minister listed ease of doing business, tax reforms, FDI liberalisation, and industry-friendly policies as areas where the government has acted in line with expectations. She also pointed out that the MSME sector remains a key contributor to India’s GDP, with the government ensuring that the Small Industries Development Bank of India (SIDBI) has a physical presence in MSME clusters.
“Even in this day and age when we are talking about digital banking, we insisted that SIDBI would be present in each of these clusters,” she added.
She also stressed the importance of a long-term vision for India’s growth, highlighting the critical role of the industry.
“Our path towards Viksit Bharat will not be based merely on infrastructure development or nominal improvements in human resource training. It will be guided by a seasoned approach to quality management, identifying the levels and sectors within manufacturing and services where interventions are most needed. With the experienced input of industry leaders, these interventions can serve as a powerful catalyst to enhance production in India and improve the quality of services across the country,” Sitharaman said.
Cautious optimism on private capex
Her call comes at a time when global agencies are cautiously optimistic about India’s private investment cycle.
S&P Global this week projected that Indian companies could invest between USD 800-850 billion over the next five years, though large private capacity additions are expected to pick up only gradually. “There is still a degree of caution that we are seeing in terms of large private capacity addition. We do think that it will come over a period of time,” said Geeta Chugh, sector lead for financial institutions ratings in South and Southeast Asia at S&P Global.
Crisil Chief Economist D.K. Joshi noted that while private investments are taking place, their pace is trailing nominal GDP growth. He cautioned that global uncertainties, including shifting trade policies and tariffs, are prompting corporates to delay their decisions.
Responding to her remarks, Tata Sons Chairman N Chandrasekaran said the opportunity created by the government is “enormous” across both domestic and export markets.
“I firmly believe that more entrepreneurs, more small and medium companies and big corporates, would make a lot of investments. I'm very confident, because without that investment, we will not be able to capture the opportunity,” Chandrasekaran said, adding that the world is calling for resilience and supply chain, alternative sources.
"India is the best place with the leadership that the honourable Prime Minister provides for all of us,” he said.
Speaking at the IFQM Symposium, the minister underlined that Prime Minister Narendra Modi’s government has not relented on reforms or ignored industry demands.
She called on India Inc to partner with the government not only in skilling youth but also through year-round engagement instead of restricting consultations to the Budget season. This comes a day after the minister said that the new reforms are set to leave Indian economy with Rs 2 lakh crore cash in hand.
“Today I have a basket of things on which the government has delivered... I hope there is no more hesitation for the industry to invest further, to expand capacities, produce more in India, and what else is required by the government to do, spell them out,” Sitharaman said.
Also Read: Indians to soon have Rs 2 lakh crore more cash in hand from GST cuts, says Nirmala Sitharaman
The finance minister listed ease of doing business, tax reforms, FDI liberalisation, and industry-friendly policies as areas where the government has acted in line with expectations. She also pointed out that the MSME sector remains a key contributor to India’s GDP, with the government ensuring that the Small Industries Development Bank of India (SIDBI) has a physical presence in MSME clusters.
“Even in this day and age when we are talking about digital banking, we insisted that SIDBI would be present in each of these clusters,” she added.
She also stressed the importance of a long-term vision for India’s growth, highlighting the critical role of the industry.
“Our path towards Viksit Bharat will not be based merely on infrastructure development or nominal improvements in human resource training. It will be guided by a seasoned approach to quality management, identifying the levels and sectors within manufacturing and services where interventions are most needed. With the experienced input of industry leaders, these interventions can serve as a powerful catalyst to enhance production in India and improve the quality of services across the country,” Sitharaman said.
Cautious optimism on private capex
Her call comes at a time when global agencies are cautiously optimistic about India’s private investment cycle.
S&P Global this week projected that Indian companies could invest between USD 800-850 billion over the next five years, though large private capacity additions are expected to pick up only gradually. “There is still a degree of caution that we are seeing in terms of large private capacity addition. We do think that it will come over a period of time,” said Geeta Chugh, sector lead for financial institutions ratings in South and Southeast Asia at S&P Global.
Crisil Chief Economist D.K. Joshi noted that while private investments are taking place, their pace is trailing nominal GDP growth. He cautioned that global uncertainties, including shifting trade policies and tariffs, are prompting corporates to delay their decisions.
Responding to her remarks, Tata Sons Chairman N Chandrasekaran said the opportunity created by the government is “enormous” across both domestic and export markets.
“I firmly believe that more entrepreneurs, more small and medium companies and big corporates, would make a lot of investments. I'm very confident, because without that investment, we will not be able to capture the opportunity,” Chandrasekaran said, adding that the world is calling for resilience and supply chain, alternative sources.
"India is the best place with the leadership that the honourable Prime Minister provides for all of us,” he said.
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