Missing Corporate Investments: The Key to India's 8% GDP Growth Dream

Former Reserve Bank Deputy Governor Michael Patra criticized India Inc for not investing enough, which he claims hinders GDP growth to 8%. Patra stressed the importance of corporate investments, boosting consumption, and addressing labour issues to achieve economic growth and tackle challenges like climate change.

Michael Patra, former Deputy Governor of the Reserve Bank, has expressed concerns over the lack of investment from India's corporate sector, describing it as a 'missing actor' in the nation's economic growth. His remarks were made during an event at Elara Capital on Monday.

Patra emphasized that if corporate investment were to increase adequately, India's GDP growth could surpass 8%. He pointed out the recent drop to 6.5% in FY25, but with indications of recovery to 7.8% in Q1FY26, suggesting potential for further growth.

To achieve this, Patra recommended stimulating consumption and resolving labour market challenges. He also urged a serious consideration of climate change and a shift in education and infrastructure expenditures. Patra contended that prudent inflation control and government support can aid the sectors affected by tariffs, enhancing long-term growth.

(With inputs from agencies.)