Private companies must invest in India's growth journey, says EAC-PM

S. Mahendra Dev, chairman of the Economic Advisory Council to the Prime Minister (EAC-PM), highlighted on Sunday that private companies, with their abundant capital, should actively contribute to India’s growth trajectory, noting that investments and exports will be key drivers of the country’s economic expansion.

 

Dev added that the quality of employment remains a concern, which is why the government is focusing on expanding jobs in the formal sector. Speaking at the launch of the book Everything All at Once, Dev said, “Investments and exports will drive growth… the private sector has considerable capital, and it should now invest in India’s development journey.”

 

Dev also underscored India’s strengths, including its young workforce and advancements in digital technology. On the theme of Viksit Bharat, he noted that inclusive growth has contributed to a significant reduction in extreme poverty. He added that India is on track to meet its net-zero targets and needs to decrease its reliance on coal.

 

Private sector capex 

A recent article by the Reserve Bank of India (RBI) noted that private sector capital investment is expected to grow by 21.5 per cent to ₹2.67 trillion in 2025-26. This increase is likely to be supported by strong macroeconomic fundamentals and a 100 basis point reduction in the policy rate.

 

GST reforms 

Earlier this month, Finance Minister Nirmala Sitharaman stated that the government has met the expectations of India Inc through its supportive policies, and now it is the industry’s responsibility to invest and expand capacity.

 

Addressing the IFQM Symposium, Sitharaman emphasised that the government has consistently focused on improving the ease of doing business, implementing tax reforms, attracting foreign direct investment (FDI), and creating industry-friendly policies. She encouraged companies to overcome hesitation and actively contribute to strengthening the nation’s economy.

 

Previously, Sitharaman had highlighted the positive impact of goods and services tax (GST) reforms, noting that they have injected at least ₹2 trillion back into the economy, increasing disposable income for citizens. She pointed out that nearly 99 per cent of items previously in the 12 per cent GST bracket have been moved to the 5 per cent slab, providing relief to the middle class and supporting poverty reduction. Similarly, around 90 per cent of goods in the 28 per cent bracket have been reclassified to the 18 per cent category.

 

She also noted that GST collections increased to ₹22.08 trillion in 2025 compared to the levels at the time of its introduction, while the number of taxpayers expanded to 15.1 million from 6.5 million.

 

“The advantages of GST reforms will outweigh the incentives provided to various industries by a factor of ten,” Sitharaman added.