Private sector participation is necessary to increase investment in the economy: Assocham President

Industry body Assocham said on Tuesday that capital expenditure cannot be accelerated by large scale public investment and private sector participation is necessary to increase investment in the country’s economy. Prime Minister Narendra Modi had last month urged industry to ramp up investment in line with the government’s decision to increase capex and take advantage of the opportunities presented in the Union Budget 2023-24. Assocham’s newly appointed president Ajay Singh said he expects a “significant increase in private investment” in the coming two-three years.

This is linked to increasing the capital expenditure of the Centre. He told reporters, “It cannot be that the expenditure in the economy is largely public expenditure. The private sector needs to get involved. The environment that is being created today and with it the government spending on infrastructure, opportunities are available for both domestic and foreign companies. I think you will see a spurt in private investment in the next two-three years.

According to SpiceJet Chairman and Managing Director Singh, he feels that the private sector is realizing the need to tap the opportunities in the country. The Assocham President also said that it is time for the Reserve Bank to pause the repo rate hike. Sectors like auto and real estate need a signal that interest rates are coming down.

He said, “The way the Reserve Bank has managed the interest rate, it is excellent. However, we feel that at this juncture, any increase in the policy rate is going to have some degree of adverse impact on some sectors. Therefore, we suggest that there is a need for careful consideration before further increase in the policy rate.

Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.