New Delhi, Feb 3 (PTI) – Finance Secretary Tuhin Kanta Pandey on Monday called upon India’s private sector to step up investments, emphasizing that achieving the nation’s goal of becoming a developed country requires a collaborative effort between the government and businesses.
Speaking at the post-Budget industry interaction organized by the Confederation of Indian Industry (CII), Pandey highlighted the groundwork laid by the government for sustained economic growth. He urged businesses to embrace the "animal spirit" and actively invest in India’s future.
"Given our headwinds, we have to put together as 'We-We', as a team, not only a finance ministry team but Team India... I will encourage the industry. Now, you have to inculcate animal spirit in you and try and invest. Some of you have been waiting to invest... I think the time to plunge is now," he asserted.
Government’s Push for Capital Expenditure
The government has significantly increased its capital expenditure (capex) to drive growth, compensating for the private sector’s reluctance to make fresh investments in recent years. The FY26 Budget has allocated ₹11.21 lakh crore towards capex, marking a steady increase from previous years:- ₹10.18 lakh crore (Revised Estimates for FY25)
- ₹10 lakh crore (FY24)
- ₹7.5 lakh crore (FY23)
- ₹5.54 lakh crore (FY22)
- ₹4.39 lakh crore (FY21)
Balanced Fiscal Approach and Non-Inflationary Stimulus
Addressing a post-budget session at the Federation of Indian Chambers of Commerce & Industry (FICCI), Pandey assured that the FY26 Budget provides a non-inflationary stimulus to encourage growth while maintaining macroeconomic stability."We also have sufficient stimulus in the economy, a non-inflationary stimulus, which will promote savings, investment, and growth. It will push incremental growth, work on the demand side, and work on the supply side," he explained.
The fiscal deficit has been pegged at 4.4% of GDP for FY26, with the FY25 target revised downward to 4.8%. Pandey emphasized that fiscal consolidation was essential to avoid inflationary pressures, which could undermine economic stability.
"If we try to stimulate the economy when we should not, it may turn inflationary and reverse the very process of inflation control that we have been working at. This would be counterproductive," he added.
Boosting Disposable Income and Managing Inflation
To increase disposable income and encourage consumption, savings, or investment, the Budget raised the income tax rebate limit to ₹12 lakh, effectively exempting individuals earning up to this amount from income tax.Pandey also underlined the importance of addressing structural supply constraints, particularly in the agriculture sector, to control food inflation and keep interest rates in check.
"Food inflation, if not addressed, will keep hurting us year after year and maintain high interest rates. This neither helps the industry nor the middle class, as people end up paying higher EMIs," he cautioned.
With a carefully balanced approach between growth and inflation control, Pandey urged the private sector to seize the moment, invest, and help propel India towards its Viksit Bharat goal.
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