FM Nirmala Sitharaman to India Inc:Don’t hesitate, invest and expand

Union Finance Minister Nirmala Sitharaman on Thursday urged Indian industry to shed its caution and step up investments, stressing that the government has already delivered on key reforms and policy measures demanded by businesses.Speaking at the Indian Foundation for Quality Management (IFQM )Symposium, Sitharaman said Prime Minister Narendra Modi’s government has consistently advanced reforms and ensured industry-friendly policies, adding that it is now the turn of India Inc to respond with confidence.“Today I have a basket of things on which the government has delivered... I hope there is no more hesitation for the industry to invest further, to expand capacities, produce more in India, and what else is required by the government to do, spell them out,” Sitharaman said.
The finance minister highlighted a series of steps already taken, including ease of doing business, tax reforms, FDI liberalisation, and support to MSMEs. She pointed out that the Small Industries Development Bank of India (SIDBI) has been mandated to maintain a physical presence in MSME clusters, even in an era of digital banking, underscoring the government’s focus on small businesses.Sitharaman also urged industry leaders to maintain continuous engagement with the government rather than restricting consultations to the Budget season. She said India’s long-term path to becoming Viksit Bharat would be built on quality management, targeted interventions in manufacturing and services, and strong partnerships with industry in skilling the youth.

India's biggest contributor to the GDP is from the MSME sector, they are spread all over the country.

And in the MSME clusters today, we have ensured that the Small Industries Development Bank of India (@sidbiofficial) is physically present.

Even in this day and age when we… pic.twitter.com/k3lsOF3t4X

— Nirmala Sitharaman Office (@nsitharamanoffc) September 18, 2025

Investment climate and global outlook
Her remarks come amid cautious optimism on private capital expenditure. S&P Global this week projected that Indian companies could invest between USD 800–850 billion over the next five years, though large private capacity additions are expected to pick up only gradually.“There is still a degree of caution that we are seeing in terms of large private capacity addition. We do think that it will come over a period of time,” said Geeta Chugh, Sector Lead for Financial Institutions Ratings in South and Southeast Asia at S&P Global.Crisil Chief Economist D.K. Joshi echoed similar sentiments, noting that while private investments are happening, their pace is lagging nominal GDP growth. Global uncertainties and shifting trade policies, he said, are contributing to corporate hesitancy.
Industry response
Responding to Sitharaman’s message, Tata Sons Chairman N Chandrasekaran said the government had created “enormous” opportunities across both domestic and export markets.“I firmly believe that more entrepreneurs, more small and medium companies and big corporates would make a lot of investments. I’m very confident, because without that investment, we will not be able to capture the opportunity,” Chandrasekaran said.He added that global supply chain realignments demand resilience and alternative sourcing, positioning India as the most viable destination. “India is the best place with the leadership that the honourable Prime Minister provides for all of us,” he said.

(Business Correspondent)