Need private investment for Viksit Bharat: CEA

NEW DELHI: The Centre has underlined the need for higher private investment, arguing that govt spending alone cannot help achieve the goal of Viksit Bharat."While India's savings base was substantial and would need to grow further, significantly greater participation by private capital would be essential to mobilise the investment required for Viksit Bharat," chief economic adviser V Anantha Nageswaran told officials and finance ministers from states and the Centre on Saturday, according to a finance ministry statement.On Friday, economic affairs secretary Anuradha Thakur had made similar comments. " The DEA Secretary emphasised that the scale of transformation to attain Viksit Bharat could not be met by govt budgets alone."Private-sector financing, innovative financing mechanisms and cooperation across levels of govt will play a critical role," added the release.At the first first-of-its-kind meeting, Nageswaran said: "Viksit Bharat depends on Viksit Rajya."The Centre urged states to step up efforts to attract investment, with Nageswaran calling for the practices shared by states, ongoing deregulation efforts and expert recommendations to be taken forward and translated into partnerships with clear responsibilities and timelines.He said that over the next five years India must sustain the long-term development journey, while accelerating resource mobilisation, when global financing opportunities remain available.The govt's chief economist identified three priorities for states: creating an enabling environment for private investment through the availability of land, power and logistics, supported by effective single-window clearances; improving the quality of investment through robust project-preparation pipelines and credible project reports to facilitate access to domestic and multilateral finance, alongside directing credit towards underserved districts with growth potential; and strengthening states' own capital expenditure despite fiscal constraints.He also said that states should raise capital outlay from approximately 2.4% to 3% of GSDP by 2031-32.Get the latest Business News and Live updates. Download the TOI app.