Time for private investment is now; delays risk economic competitiveness

Despite softening inflation, the degrees of freedom for the central bank to reduce interest rates might decrease, due to higher government borrowing to keep pump-priming the economy

Buoyed up by a young and dynamic workforce, substantial government investments in infrastructure, strong financial sector balance sheets, and a globally acclaimed digital stack, India’s growth outlook appears robust. The recovery witnessed following the Covid-19 pandemic has positioned the country as the fastest-growing large economy, with the International Monetary Fund (IMF) expecting India to grow at 7 per cent in FY25.

However, given that private sector investment, especially in machinery, equipment, and intellectual property, has lagged in recent years, this recovery is incomplete. As noted in the latest Economic Survey, private sector gross fixed capital