Private investment picking up as Indian firms clean balance sheets: Sitharaman

India is experiencing a resurgence in private investment, according to Union Finance Minister Nirmala Sitharaman. The minister spoke at the Bloomberg New Economy Forum, highlighting that Indian firms are strengthening their balance sheets and attracting both domestic and foreign private capital. This comes after a difficult period between 2013-14, when poor asset management and debt repayment issues strained corporate and banking balance sheets.

Sitharaman pointed to progress in sectors like renewable energy, semiconductors, pharmaceuticals, and aviation, which were affected by earlier balance-sheet problems. The government's efforts include the National Infrastructure Pipeline, National Bank for Financing Infrastructure and Development, and National Investment and Infrastructure Fund, which provide opportunities for long-term, high-risk investments.

Sitharaman also mentioned the government's concessional corporate tax regime, which was introduced in 2019 but faced delays due to the pandemic. She noted that India's civil aviation sector is growing at about 16%, with airlines placing orders for new aircraft every week. Additionally, the government aims to sustain infrastructure momentum and upgrade infrastructure across sectors, particularly in energy, given the growing importance of AI and data centers.