Visible signs of pickup in private investment cycle: Shaktikanta Das

Das highlighted that India is now witnessing a rapid transformation fuelled by the so-called 'triple threat' of progress: innovation, disruption and the birth of entirely new business models

Indian companies are now on a much stronger financial footing after a multiyear deleveraging cycle, cleaner balance sheets, lower leverage and improved profitability, said Shaktikanta Das, principal secretary to the Prime Minister, at an event. 

This positions the country well for the next phase of investment and expansion, and there are visible signs of a pickup in the private investment cycle, Das added.  

“After a multiyear deleveraging cycle, Indian corporates now stand on much stronger financial footing. Balance sheets have been significantly cleaned up, with reduced leverage, stronger profitability and markedly improved interest-coverage ratios,” Das said.

He added that this renewed financial strength had enabled large firms to weather global disruptions, while positioning themselves for the next phase of investment and expansion.  

 

“In fact, there are already visible signs of a pick-up in the private investment cycle,” he said.  

Das previously served as the governor of the Reserve Bank of India (RBI).  

He highlighted that India was now witnessing a rapid transformation. It is being fuelled by the so called 'triple threat’ of progress: innovation, disruption and the birth of entirely new business models.  

“The democratisation of credit, the revolution in digital payments and the rise of fintech have turned what was once a rigid sector into a fluid and dynamic engine of growth. 

We are no longer just providing services; we are building the infrastructure of aspiration for 1.4 billion people,” he said.

He added that retail investors have become a powerful pool for stable domestic capital, symbolising a cultural and structural shift towards long-term wealth creation. 

Speaking on the trade agreements that India has signed in the recent past, Das said that amid global supply chain disruptions, rising tariffs, and geopolitical fragmentation, India has pursued an assertive strategy of trade diversification, anchored in free trade agreements (FTAs) and interim trade pacts. 

India has signed major FTAs with the UK, Oman, New Zealand, the European Union (EU) and the US. 

“India is now negotiating trade agreements with major advanced economies from a position of strength and confidence,” Das said.

He added, “The India–EU FTA is a landmark ‘next generation’ partnership, which unlocks unprecedented market access and places India in the central circle of global trade. The India–US trade agreement represents another major breakthrough, sharply reducing US tariffs on Indian goods.” 

According to Das, India’s growth story has become credible and the coming decade will not be one where India simply participates in global growth, but one where India shapes it.