Investing for growth

Private-sector investment revival is crucial

The Government of India has been pushing capital expenditure to enable higher economic growth in the post-pandemic period. The idea is higher government capital expenditure will not only build the much-needed infrastructure in the country but also increase economic activity, which will encourage the private sector to invest. However, as this newspaper reported on Wednesday, several states are lagging and have reached only about a quarter of their capex target for the financial year. The role of investment in pushing economic growth has once again been underscored in a comprehensive study by the World Bank, published in the latest Global