Finance Minister Arun Jaitley on Saturday said public and foreign investment remains intact, but private sector expansion is needed in a big way to let the economy start firing on all cylinders.
Observing that domestic investment continues to be a challenge, Jaitley called upon the banking sector to support corporates to propel growth.
“Indian private sector needs to expand in a big way. It needs to invest and that’s when all engines of economy (will) start firing,” Jaitley said while addressing a seminar on debt recovery here.
The minister spoke of liberalisation of FDI policies because of which India has emerged as a preferred destination of foreign investment.
“Foreign investors are getting far greater returns on their investment here than in any other country,” he asserted.
“Public investment and foreign capital on which the economy is firing are intact… domestic investment is still a challenge.”
The minister further said there is a “silver lining” visible with festive purchases, indicating upturn in rural and urban demand, but domestic investment will have to pick up in a big way for which banks need to do their bit by supporting corporates and thus boosting growth.