Private investment in economy is picking up pace, old perception of delay in government work is changing: Seetha Raman

Finance Minister Nirmala Sitharaman said on Tuesday that the economy is currently witnessing an increase in private sector investment and today's pace of government work has changed the old perception that if there is administrative work, there will be delays.
Mrs. Seetha Raman was addressing the 53rd All India Management Conference of the All India Management Association (AIMA), the apex body of the management sector, here. He said that the Centre's estimated capital expenditure has been increased to over Rs 12 lakh crore in 2026-27. Effective capital expenditure, including grants from the Center to states for building capital assets, has exceeded Rs 17 lakh crore.
"The government has made strategic use of public capital expenditure to encourage and attract private investment and the resulting increase in private investment is clearly visible," Ms Seetha Raman said. He said that in the first quarter of the financial year 2026-27, the gross fixed capital formation increased to more than 34 percent of the gross domestic product. It has grown by about 12 percent in real terms, while capacity utilization in the manufacturing sector has risen to 75 percent. He said that the business has been fueled by this operational speed by solving the dual (of banks and companies) balance sheet problem (the problem of non-banking companies getting loan on loan from banks). "India today is in a situation of dual balance sheet advantage—commercial banks have sufficient liquidity to lend and companies are financially sound enough to invest," he said.
The finance minister said that the growth of bank credit to the industrial sector has also accelerated. In June this year, banks' loan business registered a growth of 19 percent year-on-year. Credit is reaching the people and sectors that need it. Mrs Seetha Raman said that India's Free Trade Agreements (various FTAs) with other countries are opening new markets for India's labour-intensive goods and services. He encouraged the commercial sector to seize this opportunity.
In her address on the theme of the conference - 'Transformation for the Future: Growth with Stability', Ms. Seetha Raman mentioned the acceleration of work in various sectors of the government, saying that the entry and exit time of ships at major ports has almost halved in a decade, the rail network is now almost fully electrified and freight movement has increased to a record 1.67 crore tonnes per day by August 2026 through digital public infrastructure. On an average, around 79 crore transactions took place. He said states are competing with each other to attract investment and as a result of this competition high-value activities are spreading to tier-2 and tier-3 centers like Coimbatore, Vadodara, Visakhapatnam, Indore, Bhubaneswar and Jaipur. Semiconductor Mission 2.0 is also based on the same model, linking effective implementation by states with a centrally developed framework.
He said that after returning to power in July 2024, the National Democratic Alliance (NDA) government in its first budget emphasized reforms and boosting economic activities, which ultimately lead to increased employment and livelihood opportunities. This gives us growth and strength. He said the government had given incentives on first-time job placements, paid part of retirement contributions of workers and started corporate internships - all under 'Employment Linked Incentives' (ELI) schemes.
The finance minister said that the budget for the financial year 2025-26 cut income tax rates and increased the scope of slabs, which increased disposable income and aggregate demand. Our goal should be not just to adapt, but to lead. He urged the management world to move forward with new thinking, saying, "For decades we have learned from management practices developed elsewhere, from 'kaizen' to 'lean manufacturing.'
"This will require sustained efforts. As a country we are fully capable; we must believe in ourselves and move forward," the finance minister said. He said that today's managers need a deep understanding of supply chain risks from geopolitical factors, climate risks, behavioral science, data and regulatory and technology-based project management. He said that in view of this, AIMA should take measures to reform the curriculum in the entire industry. "We have to develop leaders who can bridge the gap. As we work towards a 'Developed India' by 2047, the contribution of Indian management practices will be measured by the quality of the institutions we build today," he said. He said that the need is not only to build big companies, but also to improve companies so that they are competitive, innovation driven, reliable and strong and can lead India in the coming decades.
Mrs. Seetha Raman mentioned the September 2025 reforms in GST and the measures taken in this time's budget to bring more certainty in the direct and indirect tax system. The Finance Minister also mentioned the 50-year interest-free loan scheme to states through the 'Special Assistance to States for Capital Investment' scheme, which is partly linked to reforms. The Center has adopted a strategy of launching several new schemes on the basis of competition ('Challenge') among the States so that the States use their strengths and come up with their best proposals.
He also said, "The challenge in the next 20 years is not just to create more startups. The challenge is to see how many of today's startups can become large, professionally run and long-lasting companies." He said that people from AIMA and personalities from the corporate world can help these start-ups through the difficult phase of transitioning from founder-led to institutional-led companies and while doing so, they can also retain the entrepreneurial energy that made these companies start.