Dallas Indian Community - DallasIndian.net
| | | | | | | | | | | |
 


 

India Inc needs to invest more instead of sitting on funds: CEA Nageswaran

Author : IANS

Read Latest News and Articles

Share With Your Friends



Add an Article

View All Contributions

Add To My Favorite

Add A Picture

New Delhi, Dec 7 (IANS) India’s corporate sector needs to invest more to make a comeback for rebalancing the country's economy towards investment and manufacturing, the government's Chief Economic Advisor (CEA) V. Anantha Nageswaran said on Thursday.

Speaking at apex business chamber CII's Global Economic Policy Forum 2023, he said: "Balance sheets have been largely repaired both in the financial sector and the corporates. The gross savings of private non-financial companies or corporates have doubled in the last eight years."

His message was clear that corporates need to invest instead of sitting on funds.

"Waiting for demand to arise before they start investing will delay the onset of such demand conditions from happening," he opined.

"Investment leads to employment, income generation, consumption and savings is recycled into investments, so the more the corporate sector delays its investments, the virtuous cycle of employment generation, income growth, and consumption growth leading to more savings will not materialise," he added.

As things stand, private investments have not rebounded to their pre-pandemic levels.

There has been a lack of job creation, while investments have been limited to infrastructure and consumer sectors. Even the consumption recovery has been uneven as rural demand has been lagging behind.

"The onus of ensuring that the rebalancing happens, as it did in the first decade of the millennium, is to be shared between the non-financial private corporate sector and financial sector, in terms of providing the resources," Nageswaran said.

"The corporate sector without even depending on financial resources from the capital market or financial institutions have enough of their resources to be able to make these investments and make the rebalancing happen," he added.

The slowdown in investment comes amid a global slowdown and economic uncertainties arising due to the outbreak of wars in the Middle East and Ukraine.

--IANS

pannu/pgh


Copyright and Disclaimer: All news and images appearing in our news section, search engines and social media are provided by IANS. If you face any issues related to the content/images, please contact our news service provider directly. We are not liable/responsible for any content/images related to the news service provider.


Latest News

View More News


More News Articles

Salman offers fractional ownership of his paintings, teams up with art firm

WPL 2024: Want to create another pool of 20-25 players for the Indian team, says Amol Muzumdar

Warner Music Group CEO bets big on MENA, signs up Nora Fatehi

Rohit Saraf wraps up Hyderabad schedule of 'Mismatched 3'

Zaheer Khan was someone I used to watch a lot to try and learn from, says James Anderson