BS EDIT: India’s growth faces a private investment puzzle

By Business StandardPublished On May 1, 2025

Growth Has Stabilised

India grew 6.5% in FY25 and is on track for similar growth this year

But to meet long-term goals, higher, broad-based growth is needed

Public Capex, Private Caution

Government capital spending has surged

Yet, private investment remains muted despite policy intent to crowd it in

New Data, Some Concern

A new NSO survey shows a 25% drop in planned private capex for FY26

Firms are cautious amid global and domestic uncertainty

What’s Holding Firms Back?

Global trade uncertainty

Weak domestic demand

Reluctance to reveal unapproved projects

Signs of Optimism

India–US trade deal talks progressing

Global firms like Apple shifting supply chains to India

The Real Trigger?

Rate cuts may help, but real recovery hinges on demand revival

Private investment must pick up for sustained, inclusive growth