our long capex wait

Finance Minister Nirmala Sitharaman on Tuesday asked Indian manufacturers why they are not investing even though the government had cut corporate tax, enhanced production linked incentives (PLI) and other benefits. “From 2019,” she said, “… I hear the industry doesn’t think [the environment] is favorable. OK, the tax rate was lowered. Give PLI? We have given PLI. I India Inc. I want to hear from What’s stopping you?” His question reflects despair over India’s slow revival in private investment after a prolonged slowdown. It has stymied economic growth and centered around the task of plowing in money to keep the engine running. The idea is to spur growth and “raze in private capital expenditure. Yet, while spare capacity has been reduced in many sectors, private sector activity has not increased as expected. Consumer demand from the pandemic has increased.” But as the economy recovers from its adversities, it is accelerating. Bank credit, though still uneven, has also shown signs of vibrancy. Animal Spirits of India Inc. appear centered at the top, and it is not easy for anyone to explain.