Finance Minister Nirmala Sitharaman recently called upon Indian businesses, often referred to as ‘India Inc.’, to seize the opportunities presented by the government’s comprehensive policies and reforms. She stressed that now is the time to invest more and significantly expand production capacities without hesitation.
Ms. Sitharaman further highlighted the importance of collaboration, asking the industry to join forces with the government in initiatives aimed at skilling the nation’s youth. She also emphasized the need for ongoing engagement with the government throughout the year, rather than limiting interactions only to the period leading up to the annual Budget.
Speaking at a symposium hosted by the Indian Foundation for Quality Management (IFQM), Ms. Sitharaman explained that achieving the vision of ‘Viksit Bharat’ (Developed India) will depend heavily on a sophisticated approach to quality management. This involves carefully identifying specific areas and sectors within both manufacturing and services where targeted interventions can have the most impact.
When asked by Tata Sons chairman N. Chandrasekaran about her key expectations from the industry, Ms. Sitharaman outlined three crucial points: increase investment, partner with the government for youth skill development, and maintain continuous dialogue with policymakers, not just during budget preparations.
She affirmed that the government has consistently demonstrated seriousness in its efforts, aligning with industry expectations. She cited numerous government initiatives designed to improve the ease of doing business, offer tax benefits, formulate policies that enhance business environments, and encourage greater Foreign Direct Investment (FDI).
“Today, I have a robust portfolio of achievements the government has delivered on,” Ms. Sitharaman stated. She added that Prime Minister Narendra Modi has remained steadfast in pursuing reforms and has always considered the industry’s feedback.
“I sincerely hope there is no longer any hesitation for the industry to invest further, expand capacities, produce more within India, and clearly articulate any additional support required from the government,” Ms. Sitharaman urged.
On the critical aspect of youth skilling, Ms. Sitharaman expressed her desire for the private sector to actively collaborate with the government in preparing young people for immediate and direct employment.
Regarding industry engagement, she reiterated that dialogue with the government should be a continuous process. “It shouldn’t be confined to just before the Budget… We are always here to listen and respond,” the Minister assured.
Responding to the Finance Minister’s appeal for increased industrial investment, Tata Sons Chairman N. Chandrasekaran acknowledged the vast opportunities and robust platforms provided by the government, both in the domestic and international markets.
“I am firmly convinced that more entrepreneurs, alongside small, medium, and large companies, will commit significant investments. I am very confident because without such investment, we will not be able to fully capture the immense opportunities available,” he remarked.
Mr. Chandrasekaran also noted that the global community is increasingly seeking resilience in supply chains and alternative sourcing options. He emphasized, “India stands as the premier location, bolstered by the Prime Minister’s leadership that guides us all.” To sustain economic momentum, particularly during the challenging COVID period, the Modi government has substantially increased capital expenditure, focusing heavily on infrastructure development.
The government has set an ambitious capital expenditure target of ₹11.21 trillion for the fiscal year 2025-26 (April-March). In the initial four months of this fiscal year, capital expenditure saw a significant 33% year-over-year increase, reaching ₹3.47 trillion.
While the government has consistently encouraged private sector industries to invest in expanding their capacities, private investment has continued to trail behind government capital expenditure. A survey released in April by the Ministry of Statistics and Programme Implementation (MoSPI) projects private investment to be 26% lower in FY26, at ₹4.89 lakh crore.
According to the Ministry’s data, private companies invested ₹4.22 trillion in capital expenditure in FY’24, ₹5.72 trillion in FY’23, and ₹3.95 trillion in FY’22.
Ms. Sitharaman also highlighted that the MSME (Micro, Small, and Medium Enterprises) sector is India’s most significant contributor to the GDP. She affirmed the government’s commitment to this sector, ensuring that the Small Industries Development Bank of India (SIDBI) maintains a physical presence in MSME clusters.
“Even in this digital age, we firmly insisted that SIDBI establish a presence in each of these crucial clusters,” Ms. Sitharaman concluded, underscoring the importance of accessible financial support for MSMEs.