'Rising capacity utilisation signals private capex revival'

Industry body Ficci’s key focus areas will be helping lift share of manufacturing in GDP to 25%, boosting R&D and innovation, maximising new-age free trade agreements (FTAs), and driving sustainability, skilling and global competitiveness through industry-led initiatives, its new president Anant Goenka says.

- @ ANANT GOENKA, PRESIDENT, FICCI

Economy will likely grow by around 7% in FY26, he tells Prasanta Sahu and Nitin Kumar in an interview. Excerpts:

The economy grew by 8% in H1. Where do you see growth for FY26?

We expect GDP growth to be close to 7% this year. Several measures have boosted consumption, including tax relief for incomes up to 12 lakh and the recent GST cuts. These steps are clearly reflected in improving demand, which had earlier been somewhat tepid. With demand strengthening, capacity utilisation across companies is rising as well. This creates a more favourable environment for private capex, which has been a key expectation of the government. As utilisation improves and confidence builds, we believe private investment should begin picking up, further supporting growth momentum through the year.

How long will GST cuts sustain the demand in the economy?