PM Modi asks India Inc to invest, take advantage of Budget announcements

Prime Minister Narendra Modi on Friday urged the Indian industry to step up investment and innovation, saying the government has laid the groundwork through aggressive capital spending and by creating a conducive policy environment in successive Budgets, and that it is now time for the private sector to drive the next phase of globally competitive growth.

Addressing the first post-Budget webinar on 'Technology, Reforms and Finance for Viksit Bharat', Modi said public capital expenditure has risen from Rs 2 lakh crore 11 years ago to over Rs 12 lakh crore in the Union Budget 2026-27, laying a strong foundation for expansion.

The higher allocation, he said, signals the private sector to invest with renewed vigour and leverage Budget announcements for 2026-27.

"India Inc should come forward with fresh investment and innovation. Financial institutions and analysts should help design practical solutions and improve market confidence," he said, calling for closer collaboration between government, industry, and knowledge partners to ensure reforms translate into tangible outcomes.

"We need greater participation in infrastructure and innovation in financial models... we must strengthen project sanction methodologies and improve the quality of appraisal," he said.

Over the past decade, the government has anchored India's growth strategy around record capital expenditure, sharply scaling up spending on highways, railways, ports, airports, digital infrastructure and energy networks to crowd in private investment and lift medium-term productivity. However, the private sector is yet to unleash the so-called animal spirit.

Modi said India's resilience over the past decade was driven by conviction-led reforms and sustained efforts to improve ease of doing business.

India has undertaken technology-led governance, strengthened institutions and even today the country is on the path of reforms.

"To sustain the reform express momentum, we not only need to focus on policy intent but also have to focus on delivery excellence. The evaluation of reforms should be on the basis its impact on the ground. We should extensively use AI, blockchain, data analytics to improve transparency, speed and accountability," he said.

He proposed the creation of a 'Reform Partnership Charter' to formalise collaboration among government, industry, financial institutions and academia as part of the goal of achieving Viksit Bharat by 2047.

Modi said when government, industry and knowledge partners come together, "reforms translate into results", and "announcements on paper turn into achievements on the ground".

Listing out investor-friendly policies announced by the government, he said, foreign investment framework has been simplified and greater predictability has been brought in.

Besides, measures have been taken for deepening of the bond market, he said, adding that new instruments with less risk should be developed to attract sustained foreign investment.

Observing that the Budget is often evaluated on different parameters, Modi said "the national Budget is not a short-term trading document. It is a policy roadmap. Therefore, the effectiveness of the Budget should also be assessed on solid and substantive parameters".

"Every year, the Budget webinar held after the Budget is important. My desire is that the webinar should not remain limited to a formal exchange of views, but focus on meaningful brainstorming," he added.

In recent years, the Centre has also complemented higher capital expenditure with structural initiatives such as the production-linked incentive schemes across key manufacturing sectors, the National Infrastructure Pipeline and the PM Gati Shakti master plan aimed at improving multimodal connectivity and reducing logistics costs.

The government has projected that sustained public investment will crowd in private capital, improve capacity utilisation and help India consolidate its position as one of the fastest-growing major economies.

Economists note that while corporate balance sheets have strengthened and banks have seen improved asset quality, private capital expenditure has remained measured due to global uncertainties, uneven demand recovery and geopolitical risks.

Initiatives like the expansion of the Unified Payments Interface, the Open Network for Digital Commerce, and growing adoption of digital identity and data platforms are being positioned as catalysts for productivity gains and formalisation of the economy.

(With inputs from PTI)