Centre To Drive Capex Until Private Sector Investment Picks Up: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Monday said the Centre will continue to drive capital expenditure until private sector investment picks up and expands capacity. She asserted that India's growth momentum should not be allowed to weaken amid global uncertainties.

While speaking at HSBC's Algorithm of Inclusion event, the Finance Minister said while the government would sustain its capex push, it would remain mindful of the fiscal deficit and ensure that spending was responsible.

"Capital expenditure is a very important component of our growth strategy because till such time the private sector also comes in to expand capacity, it is important for the government to push through with capital expenditure," Sitharaman said.

The government's capex push over the past five years had delivered good results, with its multiplier effect supporting economic activity. "We are happy to extend that. We shall continue doing that because India's growth momentum should not be lost at all," she said.

Sitharaman also made a strong pitch for greater confidence in India's economic prospects.

Country's fundamental economic indicators remained sound despite global uncertainty. We will have to speak with a lot of confidence about India. That is my request, she said.

Original source: https://www.timesnownews.com/business-economy