Capex push: Nirmala Sitharaman calls it ‘primary driver of sustained growth'; says ‘we have to have capital expenditure grow'

Time of India

2 days ago

File photo: Finance minister Nirmala Sitharaman (Picture credit: PTI)
Finance minister
Nirmala Sitharaman
on Saturday said that sustaining economic growth in the face of global uncertainties remains India's foremost priority.
She also underlined that the government will continue to rely on increased public capital expenditure as a major tool to drive development.
Speaking at a book launch event in New Delhi, Sitharaman said, 'To maintain the growth is the topmost priority. Growth is the topmost, and therefore, it will have an overlap with how you create jobs…', as per news agency PTI.
Her comments come at a time when India's economy is projected to grow at 6.5 per cent in FY25, the slowest pace in four years, down from 9.2 per cent growth in FY24.
As per PTI, the Reserve Bank of India has trimmed its GDP growth forecast for the current financial year to 6.5 per cent, down from an earlier estimate of 6.7 per cent.
The Economic Survey has pegged growth for FY26 in the range of 6.3 per cent to 6.8 per cent.
The finance minister highlighted that capital investments by the government will continue to be central to economic momentum. 'Public investments have kept pace. It has been Prime Minister Narendra Modi's clear instruction that we have to have capital expenditure grow and grow significantly,' she said, adding that such investments are a 'primary driver of sustained economic growth'.
Sitharaman also said that India must remain relevant globally and aim for a leadership role, especially by reshaping the voice of the Global South. At the same time, balancing domestic economic ambitions within the limits of fiscal responsibility is also a key area of focus, she noted.
She further pointed to the government's efforts to attract more foreign investments, stressing the importance of a favourable FDI regime and highlighting the healthy competition among Indian states in luring global investors.
On trade, Sitharaman indicated a shift towards bilateral deals over multilateral arrangements. 'We have seen bilateral agreements being signed in the last four to five years with Australia, UAE and the UK. Negotiations are progressing well with the United States as well as the European Union,' she said, as per PTI.
Speaking on India's relations with China, she said that there were initial signs of improvement following external affairs minister S Jaishankar's recent visit. 'There is something, some kind of a beginning… how far it will go is something we will have to wait and see,' she remarked, while also stressing the need for 'a sense of caution'.
The remarks were made during the release of the book 'A World in Flux: India's Economic Priorities.'
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