Private sector investment was muted in the April-June quarter, with a turnaround nowhere in sight.
Finance Minister Arun Jailtey said on Saturday that public investment and Foreign Direct Investment (FDI) have helped India grow well in the last few years. However, the best of private sector investment is yet to come, the Finance Ministry's Twitter handle tweeted.
He was speaking at the 140th anniversary of the BSE in New Delhi on Saturday.
Jaitley's hopeful comments about private sector investment gain importance at a time when corporate investment has been dismal in the past few months. This is despite the government's efforts of rolling out infrastructure projects and making new project clearances easier.
In the April-June quarter, investment by private companies in the country remained muted, indicating that a turnaround maybe a while away, data from the Centre of Monitoring Indian Economy (CMIE) said.
Even interest rate cuts to the tune of 150 bps by the Reserve Bank of India (RBI), over the last 18 months have failed to give impetus it needs to loosen its purse strings.
Even banks, whose credit growth was at a decade low, said that companies were being turned away as the central bank's asset clean up drive went into action in full swing. Companies, on the other hand, were staying away from the market due to a lack of investing options, recent RBI data has shown.
Jaitley, however, while noting the important role that stock exchanges play in the economic transformation around the world, sounded hopeful about private sector changing its investment habits soon.
On the occasion of 140 years of the BSE in the national capital, Jaitley also unveiled a commemorative postage stamp.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Finance Minister Arun Jaitley")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}