Finance Minister Sitharaman Asks Private Companies to Take Charge of Investments and R and D

Finance Minister Nirmala Sitharaman has urged private companies to lead future investments and research spending as global uncertainty becomes a permanent feature. Speaking at the Kautilya Economic Conclave, she pointed out that India currently spends only 0.83 percent of its Gross Domestic Product on research and development, which is less than a third of the average for OECD nations. Private firms contribute only about a third of that limited research spending.

Growth And Credit

Recent data shows fresh momentum in the economy, with Gross Domestic Product growing by 7.8 percent in the April to June quarter. This expansion was supported by an 11.9 percent rise in Gross Fixed Capital Formation, which serves as a key measure for investments. In nominal terms, without adjusting for inflation, this investment proxy jumped by 20.4 percent to reach 34.3 percent of the economy. Bank loans for non-food sectors also climbed nearly 19 percent year-on-year by the end of August, pointing to a revival in private capital spending.

Policy And Global Goals

Sitharaman credited the economy's current strength to steady fiscal planning and reforms carried out since 2014 across tax systems, infrastructure, and business rules. She also stressed the need for strategic resource security, open global trade, and reforms in international financial institutions to better support developing nations. The ultimate aim is to turn these economic foundations into better jobs and higher productivity as the country moves toward its 2047 development goals.

Context

The Kautilya Economic Conclave is an annual gathering where policymakers, economists, and experts discuss economic policies and growth strategies for India and the wider world. Government leaders often use such platforms to outline macro-level priorities and signal policy directions to industry leaders and international investors.