FM asks India Inc to invest more

In July, the FM had said that healthy corporate balance sheets were sitting on passive invest-ible funds, instead of directing them towards capacity expansion. Private investment has lagged government capital expenditure, which rose 32.7 per cent year-on-year in April-July FY26, reaching 30.9 per cent of the Budget Estimates, according to Controller General of Accounts (CGA) data.

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Speaking separately, at an event in Kolkata, Sitharaman said the virtuous cycle of growth would soon accelerate, pointing to the impact of GST reforms.

‘The cut in rates, she said, would spur consumption and create higher demand. “More the demand, companies will invest more to create capacities. More production will lead to more jobs which means a wider tax base,” she said.

Widening of the tax base, she added, would lay the foundation for even lesser taxes. “If more people are paying tax, we can bring the burden down even further. That will lead to lower taxes and more spending in the economy. The virtuous cycle will actually start moving and moving fast.” the FM said.