Now Reading: Public capital must not substitute private investment: FM Sitharaman
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Public capital must not substitute private investment: FM Sitharaman
Finance minister Nirmala Sitharaman said on Wednesday that public capital should act as a catalyst for private investment, not replace it. Speaking at a BRICS seminar in Jaipur, she listed government measures…
The Story in Brief
Finance minister Nirmala Sitharaman said on Wednesday that public capital should act as a catalyst for private investment, not replace it. Speaking at a BRICS seminar in Jaipur, she listed government measures including viability gap funding, the hybrid annuity model, and PM Gati Shakti that aim to make infrastructure attractive to private investors. Livemint reports the government has raised Rs 52,716 crore through disinvestment in 2026-27 so far, including Rs 31,514 crore from a stake sale in Life Insurance Corporation of India.
The Indian Opinion
The usual narrative that the government is crowding out private investment with its capex push needs a fact check. Sitharaman has clearly stated that public spending is only a catalyst. The real test will be whether the budget's 2026-27 measures, new freight corridors and waterway projects, actually attract private capital. The government has raised Rs 52,716 crore via disinvestment this year; it must now show that private sector confidence can match that pace. Will project bankability improve enough to bring in private money, or will public capex remain the main driver?
Sources (2): hindustantimes.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
