Policymakers and industry leaders emphasized on Wednesday that India's next growth phase hinges on catalyzing private investment through sustained reforms, policy stability, and stronger Centre-State coordination, with public capital expenditure having already laid a strong foundation.
Public Investment Sets the Stage
Speaking at a seminar jointly organized by FICCI and Chintan Research Foundation (CRF) on 'Investment Economics in India: Manufacturing, FDI and Industrial Transformation', Rajeev Singh Thakur, Programme Director at NITI Aayog, highlighted that public spending has delivered visible results. "India's sustained public capital expenditure has laid a strong foundation for growth, with visible improvements in infrastructure across the country," he said. "The next phase of India's growth story lay in catalyzing greater private investment through continued reforms, policy stability and an enabling business environment."
Thakur pointed to measures like the Production Linked Incentive (PLI) scheme, decriminalization of business laws, and Jan Vishwas reforms. He noted that boosting private investment remains a priority and that the government is addressing compliance bottlenecks at the ground level.
Centre-State Collaboration Key
Citing a new institutional mechanism, Thakur said, "The deregulation cell operating at Cabinet Secretary level, under which government officers are assigned specific states to work with on identifying and removing redundant regulations," exemplifies Centre-State collaboration. He added that stronger collaboration and a facilitative regulatory framework are creating conditions for greater private investment, manufacturing competitiveness, and export-led growth as India works toward becoming a developed economy by 2047.
Anant Swarup, Secretary General of FICCI, said investment has emerged as a defining pillar of India's growth trajectory. He stressed that a deeper understanding of private investment trends, sectoral challenges, and policy measures needed to unlock greater capital flows would be crucial to achieving the vision of Viksit Bharat by 2047.
Global Context and India's Preparedness
Rupa Dutta, Distinguished Fellow at CRF, highlighted the global context, noting "a fundamental reordering of the global economy, with production networks being reshaped and investment flows responding to new geopolitical realities and technological shifts." She said India is prepared with "a sustained reform agenda anchored in macroeconomic stability, rapid digital transformation and unprecedented investment in infrastructure." Initiatives like PM Gati Shakti and the National Logistics Policy have strengthened India's competitiveness and enhanced investor confidence.
MSMEs and Railways Drive Investment
In a session on domestic investment, Mercy Epao, Joint Secretary, Ministry of MSME, noted that MSMEs account for nearly half of India's exports. The focus is now on helping more firms become first-time exporters through certification, capacity building, and better access to finance. Surendra Kumar Ahirwar, Executive Director, Ministry of Railways, said "investment decisions were driven by confidence, informed risk assessment and the assurance of stable returns," and urged industry to give broader, solution-oriented recommendations.
Panelists also provided detailed suggestions on catalyzing domestic investments and streamlining the FDI environment.
