Archive · 26 Sep 2025
India Inc. Shows Less Confidence, Investment Under Modi
Imagine the Indian economy as a big playground.
During Manmohan Singh's time, businesses felt safe and invested more, building new things and creating jobs.
Private investment grew.
Businesses could criticize and share ideas without fear.
However, during Modi's time, businesses haven't invested as much, even though taxes were cut.
The writer feels this is because they're afraid to speak up.
While businesses were eager to praise Modi on social media, they hesitated to invest.
The fear and lack of confidence have led to slower income growth and fewer jobs.
Private sector investment fell to 11% of GDP under Modi, compared to 14% under Manmohan Singh.
Private sector investment grew at an annual rate of 22% under Manmohan Singh, but only 9% under Modi.
Corporate tax rates were slashed from 30% to 22% under Modi.
Middle-class citizens paid more income taxes than corporates during Modi's tenure.
The author argues that a climate of fear and uncertainty has stifled investment under Modi.
- Who
- India Inc. (businesses), Narendra Modi, and Manmohan Singh
- What
- A comparison of private sector investment and business confidence during the tenures of former Prime Minister Manmohan Singh and current Prime Minister Narendra Modi.
- When
- Manmohan Singh's tenure (2004-2014) and Narendra Modi's tenure (current).
- Where
- India
- Why
- To analyze the investment climate, confidence levels, and economic policies affecting private sector growth under both administrations.
Business Leaders' Concerns
Government's Perspective
Investment and Confidence
Business Leaders' Concerns
Businesses are hesitant to invest and expand due to fear and uncertainty in the current climate.
Government's Perspective
The government has implemented policies, such as tax cuts, to encourage investment, though they are not fully effective.
Government's Relationship with Business
Business Leaders' Concerns
Businesses are performing loyalty publicly but hedging bets privately due to coercion and pressure.
Government's Perspective
The government's actions are aimed at encouraging economic growth, even if the private sector is hesitant to take risks.
- Private Investment Under Modi
- 11% of GDP
- Private Investment Under Manmohan Singh
- 14% of GDP
- Corporate Tax Cuts (Modi)
- Reduced from 30% to 22%
- Highest Investment Under Singh
- 17% of GDP in 2007-08
- Annual Investment Growth (Singh)
- 22%
- Annual Investment Growth (Modi)
- 9%