Business EconomyPosted at: Nov 2 2026 6:57PM


Govt to sustain capex push until private investment picks up: Nirmala Sitharaman

New Delhi, Nov 2 (UNI) Finance Minister Nirmala Sitharaman on Monday said the government would continue to lead the investment cycle through higher capital expenditure until private companies step up investments and expand production capacities.
She emphasised that sustaining India's economic growth would remain a priority despite global uncertainties, while maintaining fiscal discipline.
Speaking at HSBC's Algorithm of Inclusion event in Mumbai, Sitharaman said public capital expenditure had played a significant role in supporting economic activity over the past five years. The government intends to maintain this momentum, given the positive multiplier effect of infrastructure and other capital investments on the broader economy.
The finance minister, however, underlined that the government's spending strategy would not compromise fiscal prudence. She said expenditure decisions would be guided by financial responsibility, adding that the Centre would continue to balance its growth ambitions with its fiscal deficit commitments.
Sitharaman also sought to reinforce confidence in India's economic resilience, pointing to healthy goods and services tax (GST) collections and the strength of the banking sector as indicators of underlying stability. According to her, key economic indicators do not suggest any significant weakness in the country's fundamentals, even as the global economic environment remains uncertain.
Calling for a more positive narrative around India's economic performance, the finance minister said the country needed greater confidence in its own growth story. She urged businesses and other stakeholders to move beyond excessive scepticism and recognise the strength of the domestic economy.
Highlighting domestic consumption as a key driver of growth, Sitharaman said India's expanding middle class and rising purchasing power were providing an important cushion against external economic headwinds. She noted that the country's large consumer market had gained strength as more households acquired the financial capacity to spend, supporting demand across sectors.
The government's continued capital expenditure push, she indicated, would help sustain this growth momentum until private sector investment gathers pace and creates additional capacity in the economy.UNI VK AAB
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