Centre's capex push boosted private sector confidence to take risk, invest: FM

Business To Business New Delhi, 06 August, 2026:   Nirmala Sitharaman on Thursday said the Centre's sustained capital expenditure (capex) since the COVID-19 pandemic has strengthened private sector confidence, encouraging companies to invest and participate in India's economic growth.
Speaking at the C. D. Deshmukh Lecture 2026, Sitharaman said the government's continued public investment has helped create an environment in which private businesses are willing to take greater risks.
Key remarks

• Public capex boosting private investment: She said the government's sustained capital spending has encouraged the private sector to invest by reinforcing confidence in the Indian economy.
• Confidence in growth: According to the minister, public expenditure has supported economic expansion, enabling businesses to invest with the expectation of benefiting from India's growth trajectory.
• Public debt: Sitharaman observed that all countries require some level of public debt to manage their finances, but stressed that borrowing should be prudent.
• Borrowing by states: She urged states to ensure that borrowings are used primarily for asset creation and remain within levels that can be serviced, cautioning against leaving excessive debt burdens for future generations.