Private sector investment expected to further improve: CEA
Private sector investment has been improving after Covid-19 and it is expected to further pick up in the coming months, Chief Economic Advisor V Anantha Nageswaran said on Monday. Talking to PTI after tabling of the Economic Survey in Parliament, Nageswaran said private sector investment has been improving over the years after Covid-19.
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«There was a small slump during the Covid times, however, there is a possibility that they can invest more in machinery and equipment and also in intellectual property products. Those investments have also began to rise in the last two years, but there is scope to do more because those are the ones that create quality jobs,» he said.
The private sector investment is not restricted to only cement and steel in fact data suggest there are many sectors witnessing private sector capital formation, he said.
Gross Fixed Capital Formation (GFCF) continues to emerge as an important driver of growth, as indicated in its rising share of nominal GDP, he said, adding that India is in the midst of a private capex upcycle that has been aided by government capital expenditure.
Post-Covid, the government's thrust on capex has been a critical driver of economic growth amidst an uncertain and challenging global environment.
The focus of capex has been broad-based. Spending in sectors such as road transport and
