1 day ago
Sitharaman Says Private Sector Must Lead Investment and R&D
Finance Minister Nirmala Sitharaman says companies should invest more in India, including in research that can lead to new ideas.
She said the world remains uncertain, so India needs to keep preparing.
India currently spends a smaller share of its economy on research than the OECD average.
Recent figures show economic growth and a rise in investment activity.
Sitharaman said the government has worked to make the economy more resilient since 2014.
She also said India should make sure it can access important resources.
Countries should keep trade dependable and work together, she added.
She wants global development banks to provide developing countries with more predictable long-term funding.
Finance Minister Nirmala Sitharaman urged businesses to drive investment, including research and development, amid continuing uncertainty.
India spends 0.83% of GDP on R&D, below the OECD average of 2.7%; the private sector accounts for about one-third of India’s R&D spending.
India’s GDP grew 7.8% in April-June, while Gross Fixed Capital Formation rose 11.9% year-on-year, according to the article.
Sitharaman said reforms and fiscal prudence have helped build economic resilience since 2014, and that resilience requires ongoing effort.
She also called for security in strategic resources, stable global trade, and reforms to multilateral development banks to improve long-term finance for developing economies.
- Who
- Finance Minister Nirmala Sitharaman
- What
- She called for private-sector leadership in investment, including R&D, and outlined other priorities for economic resilience.
- Where
- At the Kautilya Economic Conclave, organised by the Institute of Economic Growth and the Ministry of Finance; the article does not specify a location.
- When
- At the Kautilya Economic Conclave; the article says she spoke on its first day but does not specify the date.
- Why
- She said continuing global uncertainty requires preparation, stronger innovation capacity, and sustained economic resilience.
Private-sector investment
Government and public foundations
Who should drive the next investment cycle?
Private-sector investment
Sitharaman called on the private sector to lead investment, including R&D, to raise investment levels and strengthen innovation.
Government and public foundations
She also credited fiscal prudence and government reforms with building resilience and supporting development commitments; the article does not present this as an opposing view to private investment.
Key facts
- India R&D spending
- 0.83% of GDP
- OECD average R&D spending
- 2.7% of GDP
- Private sector share of Indian R&D spending
- About one-third
- GDP growth, April-June
- 7.8%
- Gross Fixed Capital Formation growth, April-June
- 11.9%
- Banks’ non-food loan growth
- Almost 19% year-on-year at the end of August
- Conclave organisers
- Institute of Economic Growth and the Ministry of Finance
Quotes
Nirmala Sitharaman
India’s Finance Minister
“Raising both the scale of investment and private sector participation is essential to strengthening our innovation capacity”
indianexpress.com
“Equally important, the global financial architecture must reflect the economies where growth now lies”
indianexpress.com
Sources
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