CAPITAL COST A CHALLENGE

IMPROVE SELF-RELIANCE RATHER THAN SEEKING PROTECTIVE TRADE SHELTERS, SAYS SURVEY

- VIVEAT SUSAN PINTO & MAHESH NAYAK

THE ECONOMIC SURVEY has flagged the high cost of capital as a persistent structural challenge, calling for policies that raise India’s domestic savings and make manufacturing more competitive. It argues that these are critical to lowering the country's cost of capital and reducing overreliance on foreign sources of funding.

The document also notes that corporate India should improve self-reliance rather than seeking protective, negotiated trade shelters at the cost of small and medium enterprises. The assessment comes amid a widespread call for India Inc to convert investment intent into action on the ground at a time when global economic uncertainties are on the rise.