Archive · 22 Sep 2026
Sitharaman Urges Indian Firms to Prioritize Governance, R&D Over Scale
Finance Minister Nirmala Sitharaman asked Indian companies to focus on more than becoming bigger.
She said businesses should also be well-run, trustworthy and able to withstand difficulties.
She encouraged companies to spend more money on research and development.
She said working with universities could help create new products and inventions in India.
Sitharaman also said government spending on roads, buildings and other assets is encouraging private companies to invest.
This spending has been linked to stronger industrial activity and more bank lending.
Manufacturing factories are using about 75% of their capacity.
She said India’s economy is growing close to 8%, even while global growth is slowing.
Nirmala Sitharaman urged Indian companies to build resilient, durable and better-governed enterprises.
She called for greater corporate investment in research and development through internal efforts and academic collaboration.
The finance minister said public capital expenditure is encouraging private investment and strengthening industrial activity.
Government capital expenditure exceeded Rs 12 lakh crore in 2026-27, while effective capital expenditure crossed Rs 17 lakh crore.
She said India’s GDP is growing close to 8% as global growth slows below 3%.
- Who
- Union Finance Minister Nirmala Sitharaman and Indian industry representatives.
- What
- Sitharaman urged India Inc to improve governance, resilience, technology capabilities and R&D while discussing public capital expenditure and economic growth.
- When
- Tuesday; the figures cited included the first quarter of 2026-27 and the 2026-27 financial year.
- Where
- At an All India Management Association event in New Delhi.
- Why
- She said stronger institutions, greater innovation and better execution are needed to support India’s goal of becoming Viksit Bharat by 2047.
- Speaker
- Union Finance Minister Nirmala Sitharaman
- Event
- All India Management Association event
- Public capital expenditure
- More than Rs 12 lakh crore in 2026-27
- Effective capital expenditure
- More than Rs 17 lakh crore, including grants to states for capital assets
- Gross fixed capital formation
- More than 34% of GDP in the first quarter of 2026-27
- Manufacturing capacity utilisation
- 75%
- GDP growth
- Close to 8%, according to Sitharaman