New Delhi: The Government will continue using capital expenditure to support economic growth until private companies step up investment in expanding and creating capacities, Union Finance Minister Nirmala Sitharaman said on Monday.
Speaking at an event organised by HSBC, Sitharaman said fiscal prudence remained a top priority, even as the government explored ways to sustain spending and preserve growth momentum.
"Capex is a very important component of our growth strategy because till such a time when the private sector is also going to come in and expand capacities or establish newer capacities, it is important for the government to push through with the capital expenditure," she said.
Sitharaman said the government’s capex-led strategy had delivered strong results over the past four to five years, with its multiplier effects benefiting the economy.
She stressed, however, that supporting growth must go hand in hand with fiscal discipline.
"We will have to be prudent, but we will have to be creative in which we can encourage growth and spend."
With the economy growing at over 7 percent, Sitharaman urged Indians to speak more confidently about the country’s economic prospects. She pointed to strong GST collections and the health of banks as signs of underlying resilience.
"Instrumental pillars of fundamental economic well-being are all doing alright; there is no fragility."
The minister said even informed voices sometimes expressed scepticism and called for greater optimism.
"India needs a lot of optimism, India needs a lot of conversing with optimism, India needs a reduction in cynicism. India needs to voice that we believe in ourselves," Sitharaman said.
Despite challenges such as the blockage in the Strait of Hormuz, fuel supplies were reaching India on time, she added.
Sitharaman also proposed district-level training in artificial intelligence, stressing the need to better align young people’s skills with industry requirements.
She said even engineering graduates faced gaps in job-ready skills, while industrial training institutes needed to improve their performance. She suggested setting up laboratories offering AI, information technology and hardware training.
Referring to a Budget initiative announced two years ago to revive ITIs, Sitharaman said states that had adopted the measures had benefited.
Assam and Odisha had partnered with the Singapore government for training certified by it, she said, adding that one batch had also travelled to Singapore.
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