WebinarsNew
Deep DiveNew
Explore Business Standard
The Indian economy can escape the 'middle-income trap' with substantial investments in education, healthcare, and infrastructure, French economist and inequality specialist Thomas Piketty said on Tuesday, stressing that involvement in global coalitions is essential to driving inclusive and sustainable growth. The middle-income trap is an economic situation when a country can no longer compete internationally in labour-intensive goods because wages are relatively too high, and also cannot compete in higher value-added activities because productivity is relatively too low. The result is slow growth, stagnant or falling wages, and a growing informal economy. The prominent economist emphasised that India's involvement in global coalitions is essential to driving inclusive and sustainable growth. "India can escape the middle-income trap, but this will require massive investment in education, health and infrastructure," Piketty told PTI in an interview. "We also need India to participate
Private sector investment is witnessing steady and sustained growth, driven by the government's continued capital expenditure push, Economic Affairs Secretary Anuradha Thakur said on Friday. Quoting a recent analysis, she said it shows that private sector investment, which the CII 2023 survey had indicated green shoots were emerging, now exhibits that private investment is moving at a "steady and stable pace upwards". Public capex has increased more than fivefold over the last decade from Rs 2 lakh crore in 2014-15 to 10.7 lakh crore in 2025-26, she said at the National Council of Applied Economic Research's India Policy Forum 2026 event here. The government has projected public capital expenditure at Rs 12.2 lakh crore for the current fiscal in the Budget. "Various indicators have shown, including the number of projects off-take, number of projects which are stalling, which is apparently at a decade low, which is a good thing. Public investment continues to play a catalytic role b