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Informist, Friday, Feb. 27, 2026

 

--PM Modi: High govt capex clear guidance for private sector

--PM Modi: Time for industry, fincl bodies to come forward with new energy 

--CONTEXT: Comments by PM Modi in a post-Budget webinar 

--PM Modi: Need to improve project sanction methodology

 

NEW DELHI – Prime Minister Narendra Modi Friday nudged India's private sector to pool in more money to match the government's high capital expenditure in order to give an impetus to the economy. "Government capex at such a massive scale is a clear message to the private sector," Modi said during a post-Budget webinar. "It is time the industry and the financial sector come forward with renewed energy."

 

The Narendra Modi-led government has pushed the accelerator hard on capital expenditure to drive growth. The Budget for 2026-27 (Apr-Mar) projected the capital expenditure for the next financial year starting Apr. 1 at INR 12.21 trillion, up over six times compared to FY15 capital expenditure.

 

The government had also increased its capital spending manifold hoping that it will crowd in private investments. For the past few years, the private sector's capital spending has not matched the government's expectations despite various concessions. However, it has picked up in the last year, according to the government. 

 

"In the past decade, our deliberate focus has been on infrastructure development. We decided that India's development will take place only through developing solid assets such as highways, railways, ports, digital network, and power systems. These will give productivity for many coming decades," PM Modi said.

 

The prime minister further sought "greater partnership" from the private sector in infrastructure, innovation, financing models, and emerging sectors. He said the project sanction methodology and appraisal quality should be strengthened, while putting sharper focus on cost-benefit analysis and lifecycle costing. "We aim to make system more predictable and investor-friendly," he said.  End

 

Reported by Asim Khan and Priyasmita Dutta

Edited by Tanima Banerjee

 

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