India’s fiscal discipline attracts private investment, officials say

The Story in Brief

Two top Indian economic officials have highlighted the country's improved fiscal health as private investment shows signs of recovery. DEA secretary Anuradha Thakur said at the NCAER India Policy Forum 2026 that a decade of rising government capital expenditure, from Rs 2 trillion in 2014-15 to Rs 12 trillion now, has begun crowding in private investment. She cited CII feedback showing investment is on a 'steady and stable' trajectory, with project off-take improving and stalled projects at a decade low.

Separately, Chief Economic Adviser V Anantha Nageswaran told an Assocham event that India's ability to sustain 7% growth while cutting the fiscal deficit from 9.2% to 4.4% reflects a strengthening of the economy's supply-side potential. He noted that despite repeated global shocks since Covid-19, India has also reduced its public debt ratio and seen inflation converge towards 3-4%. Both officials stressed the need for further reforms, with Nageswaran warning that the next two decades will be more challenging globally.