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Informist, Friday, Aug. 7, 2026

 

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--Econ secy: Global econ navigating period of extraordinary uncertainty 
--CONTEXT: Econ Secy Thakur speaking at NCAER's India Policy Forum 2026
--Econ secy: Global production networks being reconfigured 
--Econ secy: Pvt investment now moving at steady, stable pace upwards 
--Econ secy: Capital mobilisation needs to be widened, deeper
--Econ secy: States will need to partner in on fiscal consolidation 
--Econ secy: Savings must be channelised into productive sectors
--Econ secy: Important to improving access to finance for MSMEs 
--Econ secy: India would like more FDI

 

NEW DELHI – The government's continued push on capital expenditure over the last several years has yielded results and has created new opportunities for the private sector, Department of Economic Affairs Secretary Anuradha Thakur said Friday. At the National Council of Applied Economic Research's India Policy Forum 2026 event, Thakur said, private sector investment is now moving at a steady and stable pace upwards and data suggests green shoots were emerging. "Various indicators have shown, including number of projects off-take, number of projects which are stalling, which is apparently at a decade low, which is a good thing".

 

"Public investment continues to play a catalytic role by crowding in private investment. Public capex has increased more than fivefold over the last decade, from INR 2 tln in 2014-15 (Apr-Mar) to INR 10.7 trillion in FY26," she said.

 

The Union Budget projected the central government's capital expenditure for FY27 at INR 12.21 trillion. The government's capital expenditure in the June quarter grew 23.7% to INR 3.403 trillion.

 

India's long-term growth will be determined by how effectively public and private capital is deployed to create productive assets, globally competitive industries, quality jobs and transformative innovations, she added. "Equally important is improving access to finance, particularly for micro, small and medium enterprises, which remain the backbone for manufacturing," Thakur said.  More

 

She highlighted the need for wider and deeper capital mobilisation, with domestic savings also efficiently channelised into productive sectors of the economy. "India has made remarkable progress in expanding its pool of domestic financial resources. Household financial savings have become increasingly diversified, with greater participation in equity markets and mutual funds, alongside traditional financial instruments," Thakur said. She also said that though India is attracting foreign direct investment, it "is certainly not enough for a country like ours. We would like more, and we are constantly engaging at the policy level on how to do that...I think we need to do a lot more on outreach as well."

 

On the prevailing geopolitical environment, Thakur said, "Global economy is navigating a period of extraordinary uncertainty...Geopolitical tensions, energy market volatility, fragmented trade patterns, and technological disruptions. All of it is reshaping the global landscape." She said, over the past three years, Indian economy has grown at an average of 7% while preserving macroeconomic stability, despite a very challenging global environment. 

 

Against this backdrop, she said it was important for Indian companies to become globally competitive as global production networks are being reconfigured. "Supply chains are diversifying, firms are seeking alternatives, and industrial policy has returned to the centre of economic strategy worldwide. Today, countries that command critical technologies, competitive advantages, and innovation, along with trusted production ecosystems enjoy better bargaining power," Thakur said.

 

She said strong domestic demand and prudent fiscal management supported India's economic growth. "A lot of effort has gone into fiscal consolidation, more fiscal consolidation and dynamism in both will be needed, and probably also, states will need to partner in on that very important dimension. The strength that we have gained over the last couple of years have enabled us to navigate global headwinds...they have created an environment of confidence, policy credibility, which encourages businesses to invest, regulators to regulate, and innovators to innovate," Thakur said.  End

 

Reported by Sagar Sen

Edited by Akul Nishant Akhoury

 

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