Archive · 1 Sep 2026
Economist Urges India to Raise Investment for Faster Growth
India’s economy grew 7.8% in the first quarter of FY27.
Economist Surjit Bhalla says India needs more investment to grow faster.
He believes investment should reach about 34–35% of the country’s GDP.
India had a similar investment rate between 2004 and 2013, when growth was higher.
Bhalla says the overall investment rate has stayed fairly high, but its makeup has changed.
The government now provides a larger share, especially through infrastructure projects.
He says private businesses usually make investments that improve productivity more strongly.
Government spending is still needed, but more private investment is needed for lasting growth, especially if global conditions worsen.
India’s economy grew 7.8% in the first quarter of FY27.
Economist Surjit Bhalla said India should raise investment to 34–35% of GDP to accelerate growth.
India sustained an investment rate of about 34% during 2004–2013, a period of higher economic growth.
Bhalla said private investment has fallen by roughly 5–7 percentage points since 2011–12.
He said government infrastructure spending is necessary, but private investment is more important for productivity and sustainable growth.
- Who
- Economist Surjit Bhalla made the recommendation.
- What
- He said India should raise its investment rate to about 34–35% of GDP to accelerate economic growth.
- When
- The remarks followed India’s reported 7.8% economic growth in the first quarter of FY27; Bhalla also compared the situation with 2011–12 and 2004–2013.
- Where
- The comments were made in India during remarks to news agency ANI.
- Why
- Bhalla said stronger investment, particularly private investment, is needed for productivity gains and sustainable growth amid uncertain global conditions.
- Latest growth
- India’s economy grew 7.8% in the first quarter of FY27.
- Recommended investment rate
- About 34–35% of GDP.
- Earlier investment rate
- India sustained an investment rate of around 34% from 2004 to 2013.
- Private investment decline
- Private investment fell by approximately 5–7 percentage points since 2011–12.
- Current investment composition
- A larger share of investment now comes from the government, particularly infrastructure spending.
- Role of private investment
- Bhalla said private investment is important for productivity gains and long-term growth sustainability.
- Global conditions
- He said weaker or worsening global conditions may require India to increase investment further.