Private Investment Is Rising Selectively Despite Corporate Capex Worries, Says Sitharaman

Union Finance Minister Nirmala Sitharaman stated that private investment is picking up in the country, even though companies are being selective and choosing new sectors rather than areas where they are already present. Speaking at the Financial Express Leadership Awards in a fireside chat with Financial Express Editor Shyamal Majumdar, Sitharaman dismissed concerns regarding the corporate capex cycle and supported the upward revision of the growth forecast for 2026-27 to 7.3%. She emphasized that the government has started doing things differently with an explicit premise of trusting businesses, industry, taxpayers, and the people of India.

Growth and MSMEs

Sitharaman noted that next-generation Goods and Services Tax reforms introduced last year have made consumption and demand more visible, giving industry the confidence to invest and expand. Addressing concerns that the economy is dominated by a small number of large business groups, she said that micro, small, and medium enterprises are flourishing and now account for 40% of the country's exports. She also highlighted the rapid emergence of startups, unicorns, and billionaire companies. Regarding the production-linked incentive scheme, she stated that it has shown success although certain sectors have not performed well and need to be examined.

Tata Group and Economy

Commenting on the friction within the Tata Group and allegations made by Congress leader Rahul Gandhi, Sitharaman described them as delicate matters requiring commercial acumen and cordiality, stating that the parties should settle the issue amicably without it spilling into the public domain. On employment and wages, she affirmed that the consumption story remains intact, supported by October GST collections rising 23% year-on-year. She added that the government will continue focusing on skilling initiatives in the Union Budget to bridge the gap between college curricula and employer expectations, noting that companies often spend six to eight months training new graduates.

Context

Union Finance Ministers regularly engage with media platforms and industry leaders to outline macroeconomic policy directions and respond to private sector concerns. The production-linked incentive scheme and Goods and Services Tax frameworks form key pillars of the central government's industrial development and tax administration strategy.