New Delhi: Private sector investment will have to play a critical role in financing India’s journey towards Viksit Bharat as government budgets alone cannot meet the massive funding requirements, Economic Affairs Secretary Anuradha Thakur said on Friday.
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Addressing a conference of finance ministers and finance secretaries of states and Union Territories, Thakur said the scale of economic transformation envisaged for India would require significantly greater mobilisation of private capital.
“We know that we meet today in the backdrop of ongoing global difficulties. Under these circumstances, and because of the scale of transformation we envisage towards ourselves to reach our shared goal, it needs to be borne in mind that this scale cannot be met solely by government budgets, and that private sector financing will need to play a critical role,” Thakur said.
The conference is focused on the theme ‘Financing India's Journey Towards Viksit Bharat’.
Thakur said closer cooperation between the Centre and states on policy, mobilisation of financial resources and implementation could accelerate progress towards the Viksit Bharat goal.
She also highlighted India's sovereign rating upgrades by international rating agencies over the past one-and-a-half years, saying these reflected growing recognition of the country's economic strength, improving business environment and position in the global investment landscape.
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Thakur said Centre-state cooperation had contributed to India's recognition for macroeconomic stability and fiscal prudence. She also referred to the World Economic Forum's Chief Economists Outlook of May 2026, which highlighted India among attractive destinations in the global business environment.
Earlier this month, Japanese credit rating agency JCR upgraded India's sovereign rating to 'A-', marking such a rating after a gap of 35 years, citing solid economic growth and a strong financial system.
India's sovereign rating was also upgraded last year by S&P Global Ratings to BBB, Japan's Rating and Investment Information Inc. to BBB+, and Morningstar DBRS to BBB.
Thakur said these upgrades reflected international recognition of India's resilient macroeconomic fundamentals and fiscal management, while signalling confidence in the country's medium-term growth prospects despite global uncertainties.
“This kind of global recognition goes to underscore India's growing economic strength, improving business climate, and strengthening position in the global investment landscape,” she said.
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