Private sector investment is critical and should increase as there is no twin balance sheet issue now and no problem of capital availability, S Mahendra Dev, Chairman, Economic Advisory Council to the Prime Minister (EAC-PM) said on Friday. Dev also said that India’s investment rate needs to increase to 34-35 per cent of the GDP from 31-32 per cent at present for it to achieve 7 per cent growth along with a push towards exports.

“Increase in rural and urban demand will facilitate more private investment. Many firms are now debt free, they are rich with cash. India Inc has to make new investments instead of keeping the cash. So private investment is now important…some of the industrialists meet me and I ask them: Why are you not investing? They say: Uncertainty. I said: for the last one de

See Full Page