How To Get Private Sector To Invest In Capex? Nirmala Sitharaman Answers

The centre is creating an ecosystem for domestic and foreign investment, underscored Finance Minister Nirmala Sitharaman, urging the private sector to reciprocate. The Minister added that banks and companies are in good health, suggesting the time is right for private investment.

The Economic Survey, a state of the economy report, has stressed that the Union government’s efforts would need to be supplemented with “wholehearted acceptance” of the need for public-private partnerships in infrastructure across the country.

A capital expenditure, or capex, is used to set up long-term physical or fixed assets. In 2024-25, the central government kept the capital expenditure outlay at Rs 11.11 lakh crore. It was a 11.11 per cent raise in capex year-on-year.

Building infrastructure – physical, digital and social – has been a central focus area for the government in the last five years. This has had various dimensions – increase in public spending on infrastructure, creation of institutions to de-bottleneck approvals and execution and innovative modes of resource mobilisation.