德勤 -由私人资本拉动的经济增长或将很快降临印度 Private capital–fueled economic growth might be knocking on Indias doors soon

INDIAECONOMICOUTLOOK,OCTOBER2026

Privatecapital-fueledeconomicgrowthmightbeknockingonIndia'sdoorssoon

Afteryearsofinfrastructureandgovernmentspending-drivengrowth,emerging

indicatorssuggestprivatecapitalmayfinallybereadytodriveIndiaseconomicexpansion

ByDr.RumkiMajumdar,DebdattaGhatak

Article·11-minread·19October2026·DeloitteGlobalEconomicsResearchCenter

PRIVATECAPITAL-FUELEDECONOMICGROWTHMIGHTBEKNOCKINGONINDIA'SDOORSSOON·PG1

India’sinvestmentstoryhasgarneredsignificantattentionlately:Inthefirstquarteroffiscalyear2026to2027,1grossfixedcapital

formationgrewby11.9%inIndia2—thestrongestinfouryears.

Foraneconomywhereprivateconsumerspendinghasbeenthemaindriverofdomesticdemandinthepastfewyears,therelatively

subduedcontributionofprivateinvestmenthasleftanimportantgrowthpillarunderleveraged.Recentsignsofaturnaroundare,hence,important.

Whydoesthismatter?

Thepositiveeffectsofprivatecapitalexpendituresoftenextend

beyonddirectcontributionstoeconomicvalue:Investmentsgeneratedemandforcapitalgoods,construction,logistics,andbusiness

services.Theresultantcapacitysupportsfutureproduction,

employment,andproductivity,andsubsequentmultiplierandsupply-sideeffectsmeanthatevenamodestincreaseinprivateinvestmentscandrivelarger,long-termpositiveoutcomesforgrowth,beyondGDPcontributions.

Historically,everysignificantgrowthaccelerationinmodernIndia

hasbeenpoweredbyaprivateinvestmentboom:Thehigh-growth

eraofthemid-2000swasdrivenlargelybyasurgeinprivate

corporatecapex,peakingat18.2%ofGDP.3Currently,itisdownto10.2%.4

Intime,India’sgrowthambitionswillbecomeincreasinglycapital-

intensiveasitcontinuestobuildcapabilitiesinstrategicsectors(suchassemiconductors,electronics,defense,cleanenergy,andadvancedmanufacturing).Rapiddigitizationwillalsorequireinvestmentsin

artificialintelligenceandrelatedcomputinginfrastructure,which,inturn,willrequirelargeupfrontinvestmentsincapacity,technology,andsupportingecosystems.Hence,Indiawillhavetoraiseits

investmentratesubstantiallyoverthenextdecadetosustainhighgrowthlevels.

Governmentspendinglargelydroveeconomicgrowthoverthelastsixyears;sustainedincreasesinpubliccapexwereexpectedtohavemultipliereffectslikeimprovinginfrastructure,loweringlogistics

andtransactioncosts,andeventuallyleadtocrowdinginofprivateinvestment.

Butthatistakinglongertomaterialize:Successiveshocks—fromtheCOVID-19pandemictogeopoliticalconflicts—alongwithsupply-chaindisruptionsanduncertainglobaldemand,haveweakened

businessconfidenceanddelayedinvestmentdecisions.Volatileforeigncapitalflowshaveaddedtouncertainties.

Butwebelievethatsomeofthepositiveeffectsofpublicinvestmentsmaynowbestartingtoshow:Betterphysicalanddigital

infrastructure,strongerconnectivityandlogistics,andhealthier

High-frequencyindicatorshavealsobeensignalingastrengtheningofprivateinvestmentoverthepasttwoquarters,despiteglobal

uncertainties.

corporatebalancesheetswithimproveddemandvisibilityhaveallstrengthenedtheconditionsrequiredtoboostprivateinvestment.Ifthesetranslateintoasustainedprivatecapexcycle,itmayprovideIndiawithanimportantgrowthengine.

WeexpectIndia’seconomytogrowbetween7.1%to7.3%infiscal2026to2027,followedby6.6%to7%growthinthesubsequentyear(see“KeyassumptionsforDeloitteprojections”forscenariosusedinthesecalculations).

Whileconsumerspendingislikelytoremainsteady,withdownsiderisksstemmingfrominflationandthefadingimpactoftaxmeasures,weexpectcapitalformationtoplayagreaterroleinsupporting

growthandexpandingIndia’sproductivecapacityoverthemediumterm.

Inthisedition,weexaminewhetherIndiaisfinallyseeingthe

beginningofthiscrowding-ineffectonprivatecapital,andassesshowpolicyandpublicinfrastructureinvestmentshaveshapedthebusinessenvironment,whetherrecentmacroeconomicindicators

pointtoarevivalinprivatecapitalformation,andwhatcouldhelpturntheseearlygreenshootsintoasustainedinvestmentcycle.

Indiaawaitsprivateinvestmentdespiteinfrastructurebuildouts

Governmenthadrecognizedinfrastructureasoneofthebiggest

constraintstoIndiangrowthambitionswellbeforethepandemic:AsubstantialshareofcurrentIndianinfrastructurecapacitywasbuiltoutsince2014(figure1).

MostofIndia’sdedicatedfreight-corridorcapacity,solarcapacity,

expressways,inlandwaterways’cargocapacity,nationalwaterways,pipednaturalgasconnections,andtap-wateraccessinfrastructure

wereaddedafter2014.5Infiscal2019to2020,thegovernment

launchedtheNationalInfrastructurePipeline,envisaginglarge-scaleinvestmentsacrossenergy,roads,railways,ports,urban

infrastructure,andothersectors.6

Theintentwentbeyondcreatingphysicalassets:Betterconnectivity,reliablepower,andmoreefficientlogisticswereexpectedtoreduce

thecostofdoingbusiness,improveaccesstomarkets,andeventuallyboostreturnsonprivateinvestment.

PRIVATECAPITAL–FUELEDECONOMICGROWTHMIGHTBEKNOCKINGONINDIA’SDOORSSOON•PG2

PRNVATECAPITAL-FUELEDECONOMICGROWTHMIGHTBEKNOCKINGONINDIA'SDOORSSOON·PG3

Figure1

Overthelastdecade,Indiahassignificantlyexpandedinfrastructurecapacity

Powertransmissionnetwork

Builtupto2014Builtafter2014(uptoSeptember2026)

2.9LakhCKM

5.0LakhCKM

Naturalgaspipelinenetwork

15340KM

25400+KM

Coalproduction

565.77MT

1047.52MT

Crudesteelproduction

81.7MT

170MT

Powercapacity

249GW

552GW

Medicalcolleges

387

846

Airports

74

165

4-laneandaboveNH

18371KM45516KM

Railwayelectrification

21801KM69873KM

Portscapacity(majorports)

873MTPA1728MTPA

Metrorailnetwork

248KM1155KM

Renewableenergycapacity

76.38GW

300.5GW

Tapwateraccess

16.72%ofruralhomes

82.24%ofruralhomes

PNGconnections

25Lakhs

1.74Crores

Nationalwaterways

5

11

Expresswaynetwork

91,287KM146572KM

Inlandwaterwayscargo

-18.1MMT218MMT

Solarcapacity

-2.82GW172GW

Recognisedstartups

3502.3Lakhs

Dedicatedfreightcorridor

0KM2843KM

Notes:Km:Kilometer;ckm:Circuitkilometer;MT:Metricton;MTPA:Milliontonsperannum;GW:Gigawatt.

Source:PressInformationBureau.

eiohite.

Thatintentwassubsequentlybackedbyasharpincreaseinpubliccapex.Themomentumacceleratedafterthepandemicasthe

governmentusedinfrastructurespendingbothtosupporteconomic

recoveryandstrengthenproductivecapacity.Roadsandrailways

receivedasignificantshareofcentralgovernmentinvestment,whilestatesinvestedinroads,water,andotherinfrastructure.

PRIVATECAPITAL–FUELEDECONOMICGROWTHMIGHTBEKNOCKINGONINDIA’SDOORSSOON•PG4

Investmentsindigitalinfrastructurecomplementedthisphysical

infrastructurepush,asdigitalpaymentsandpublicdigitalplatformsexpandedfinancialinclusion,loweredtransactioncosts,andenabledbusinessestoaccessconsumersandmarketsmoreefficiently.

Consequently,India’scapexincreasedfrom1.4%ofGDPinfiscal

year2019to2020to4.4%ofGDPinfiscal2025to2026.7Publicinvestmentaveraged6.7%ofGDPbetweenfiscal2018to2019andfiscal2022to2023,accordingtotheInternationalMonetaryFund.8

Suchstrongcapexwasexpectedtoeventuallyattractprivatecapitalinvestments.AstudybytheInternationalMonetaryFundfoundthatanadditionalrupeeofpublicinvestmentcouldraiseprivate

investmentbyaround1.1rupeesto1.25rupeesaftereightquarters—withinfrastructureinvestmentsandcompletedprojectshavinga

strongerimpactonloweringlogisticsandtransactioncosts.9Allofthiscouldtranslateintoimprovedmarketaccessandraised

productivityofprivatecapital.

Yet,theanticipatedcrowding-inofprivateinvestmentswasslowtomaterialize.Theshareofprivateinvestmentsfellafterfiscal2018to2019(figure2),andiscurrentlyhoveringaround10%.

Figure2

ThecrowdinginofprivatecapitalhastakenlongerthanexpectedtomaterializeinIndia,despitethepublicinvestmentpush

Percentageofgrossdomesticproduct45%

40%

35%

30%

25%Households

20%

15%

Privatesector

10%

5%

Publicsector

0%

Note:Theyearsonthex-axisarefiscalyears.

Source:CentreforMonitoringIndianEconomyDeloite|

Thereasonmaybeinacombinationofthreefactors:·Corporatedeleveraging:Indiancorporationsspentmuchof

thepreviousdecadedeleveragingandrepairingbalance

sheetsaftertheinvestmentboomofthe2000s(figure3),withlittleincentivetoaddcapacityuntilpreexistinglevelswerebetterutilizedanddemandwasclearlyvisible.

Figure3

Withhealthierbalancesheets,India'sprivatesectormightnowbereadytoinvestincapacity

Debt-to-equityratiobysector(percentage)2.4%

2.2%

2.0%

1.8%

1.6%

14%

1.2%

1.0%

0.8%

0.6%

0.4%

0.2%

NonfinancialservicessectorNonfinancialsector

Manufacturingsector

1991

2026

Source:CentreforMonitoringIndianEconomy.

Deloitte.

·Repeatedglobalshocks:TheperiodinwhichIndia's

infrastructurepushwasexpectedtohelpcrowdinprivatecapitalcoincidedwithanextraordinarysequenceofglobalshocks(thedevelopmentoftheNationalInfrastructure

Pipelinewasfollowedalmostimmediatelybythepandemic.

Therecovery,thereafter,wasdisruptedbytheRussia-

Ukrainewar,sharpcommodity-pricehikesandhigh

inflation,monetarytightening,theconflictintheMiddleEast,disruptionsalongcriticalshippingroutes,and

heightenedtradeandtariffuncertainty(figure4).

Figure4

Someoflndia'sprimaryshippingrouteshavebeenaffectedbyglobalshocksliketheRussia-UkrainewarandtheeventsintheMiddleEast

Destination

Shareofexports(2025)

Primaryshippingroute

NorthAmerica

East:Suez/Cape→Atlantic;West:Malacca→Pacific;Panama:Droughtandreroutingsharplyraisetransitcosts

EuropeanUnion

Babel-MandebStrait→RedSea/Suez→Mediterranean(Alternative:CapeofGoodHope)

WestAsia(Gulf

CooperationCouncil)

ArabianSea→StraitofHormuz→Gulfports

Africa

9.9%

East:directIndianOcean;South/West:Caperoute

ASEAN

8.5%

BayofBengal→Malacca/Singapore→SouthChinaSea

DISRUPTIONSADDANESTIMATED15T0204DDITIONALtRANSITDAYSFoR

INDI4NSHIPMENT5ToEUROPE4NDTHEUNITEDSTATES...

...leadingtolongercashconversion,higherinsurancecosts,moreworkingcapital,highercollateralrisks

Sources:HaverAnalytics;Deloitteresearch.

Deloitte.

·Ahigherthresholdforcommittingcapital:Corporate

profitabilityandphysicalcapitalformationdivergedafterthepandemic,despitelowcorporateleverage(figure5)

Persistentuncertaintyappearstohaveheldbackinvestmentduetouncertainty.

AstudybytheReserveBankofIndiacorroboratesthis,findingthathigheruncertaintyreducedaggregatecapitalformationandpromptedfirmstoadopta“wait-and-see”approach,explainingwhystrongerbalancesheetsdidnottranslatemorequicklyintoprivatecapex.10

Figure5

Divergencebetweencorporateprofitabilityandphysicalcapitalformationisincreasingsincethepandemic

Percentagegrowth(yearoveryear)25%

Profitbeforeinterestandtax

20%

15%

10%

5%Grossfixedassets

0%

-5%

-10%

2010201420162018202020222024

Source:EconomicAdvisoryCounciltothePrimeMinister.

Degoite|

Thisisperhapswhytheinvestmentresponseneedstobeviewed

differently.TheabsenceofanimmediateprivatecapexboomdidnotnecessarilymeanthatIndia'sinfrastructurepushhadfailedtocrowdininvestments.Thetransmissionitselfmayhavebeendelayedas

successiveshocksraisedthehurdleanduncertaintiesforbusinessestocommitcapital.

IsIndiaapproachingaprivateinvestmentcycle?

Toanswerthat,weneedtolookbeyondheadlinenumbersforgrossfixedcapitalformationandanalyzeitscross-sectortrends(figure6).Energy,resources,andindustrialscontinuestoanchoractivity,withitscontributionstrengtheningoverthepastyear

Thesectoralmixisalsobroadening,withinformationtechnology

emergingasasignificantnewdriverofactivity.Contributionsfromtransportservices,consumergoods,andothersectorsalsocontinued(figure6).

Figure6

India'senergy,resources,andindustrialssectorcontinuestoanchorcapitalformationactivity

Sectoralcompositionofprivatecapitalexpenditures(INRtrillion)

●Consumergoods●ER&I●IT●Transportservices●Otherservices●Miscellaneousindustry35

30

25

20

15

10

5

H1-FY2027

H1-FY2023H1-FY2024H1-FY2025H1-FY2026

Note:H1referstothefirsthalfofthecorrespondingfiscalyear(ApriltoSeptember).

Source:CentreforMonitoringIndianEconomy

Dsloitte|

Thepasttwodecadessuggestcyclicalmovementofcapex,with

rapidexpansionfollowedbyrelativelyprolongedmoderation.Ouranalysisindicatedthatprivateinvestmenthasgenerallystrengthenedwhenseveraleconomicconditionsarealigned,ratherthanin

responsetoanysingletrigger(see“Whatdrivesprivatecapex—andwhen?”).

Aregressionanalysisofquarterlydatasince2001pointstothefactthatbusinessinvestmentsareasequentialoutcomeofpersistent

consumerdemand,availabilityoffinance,existingcapacity

utilization,andrisingbuildupofcapitalspendingandimportedmachinery,alongwithhigherpublicinvestments:

·Privatefinalconsumptionexpenditures:Sustainedgrowthinhouseholdconsumerspending—measuredbyPFCE—

providessufficientvisibilityintofuturesalesbefore

committingtoinvesting.Ourmodelsuggestsathree-quarterlaggedeffectofconsumerdemandoninvestment.Inrecentquarters,itsshareofGDPhaspeakedat67.5%.

·Capacityutilization:Asexistingcapacitybecomes

increasinglystretched,theincentivetoinvestinnewcapacitystrengthens.Capacityutilizationhasaveragedabove75.7%forsixconsecutivequarters,withdiminishingsparecapacityinfluencinginvestmentdecisionswithalagoftwoquarters.

Publiccapex:Improvingpublicinfrastructuretendstocrowdinprivatecapexwithalagofthreequartersormore,andtheinfrastructurecreatedthroughseveralyearsofelevated

publiccapexisnowincreasinglyavailableforbusinessestouse.

Industrycreditgrowth:Betteraccesstofinanceusually

precedesinvestmentsbyatleastthreetofourquarters,andlowpolicyrateshaveenabledgrowthofindustrycreditto

reachanall-timehighof20%inJuly2026.

Capital-goodsproductionandimports:Thesearemore

immediatesignalsthatinvestmentplansaremovingtowardimplementation.Domesticcapital-goodsproduction,whichcapturesmachinerymanufacturedwithinIndia,hasreachedall-timehighsinrecentquarters.Capital-goodsimportsalsocaptureequipmentsourcedfromabroadandremain

elevated.

Whatdrivesprivatecapex—andwhen?

Usingquarterlydata,controllingforseasonality,weestimatedtheassociationbetweenkeyeconomicindicatorsand

privatecapex.HighernominalPFCEispositivelyassociatedwithprivatecapexonequarterlater.Aone-percentage-pointincreaseincapacityutilizationisassociatedwithabout2.7%highercapextwoquarterslater.A1%increaseinpublic

capexisassociatedwithabouta0.22%increaseinprivatecapexthreequarterslater.One-percentage-pointincreasesinindustry-creditgrowth,capital-goodsproductiongrowth,andcapital-goodsimportgrowthareassociatedwith

approximately3.2%highercapexafterthreequarters,0.43%inthesamequarterand0.15%afteronequarter,respectively.

Source:DeloitteanalysisofdatafromCMIEEconomicOutlookandHaverAnalytics.

ThesesuggestcautiousoptimismonthepartoftheIndianeconomy.

Recentnationalaccountsdataaddtothesesignals:Realgrossfixedcapitalformationexpandedby11.9%yearoveryearinthefirst

quarteroffiscal2026to2027—thefastestpaceinfouryears—whileitsshareofnominalGDPincreasedto34.3%.

Whileonequarterdoesnotestablishaprivateinvestmentcycle,andaggregateGFCFdoesnotexplaintheshareofprivateinvestment,

severaleconomicconditionsthathistoricallyprecededstrongerprivatecapitalformationmaketherecentaccelerationinprivateinvestmenthardertodismissasanisolateddevelopment.

Theevidence,sofar,pointstogreenshootsandthatIndiamaybeclosertothebeginningofanewprivateinvestmentcyclethan

headlineprivatecapexnumbersalonecurrentlysuggest.

Iftheseearlysignalspersist,theimplicationswillextendbeyond

investmentitself.Astrongerprivatecapexcyclewilladdanother

enginetodomesticdemand,alongsideconsumption,while

progressivelyexpandingproductivecapacityandcreatingmorejobs.Thisemerginginvestmentmomentum,therefore,alsoshapesour

expectationsforIndia’sgrowthoverthenexttwoyears.

WeremainoptimisticaboutIndia’sgrowthprospectsoverthenexttwoyears.Weexpecttheeconomytogrowbetween7.1%to7.3%infiscal2026to2027,followedby6.6%to7%growthinthe

subsequentyear,supportedbyresilientdomesticdemand(figure7).Consumptionwilllikelyremainsteady,aidedbyeasinginflation

laterintheyearandincreasedcreditgrowth,whileinvestmentis

expectedtoprovideanadditionalimpetustogrowthasthebenefitsofpastpublicinfrastructurespendingincreasinglycrowdinprivatecapital.Theexternalenvironment,however,willremainuncertain,withgeopoliticaltensions,volatilecapitalflows,andintermittent

tradeandsupplychaindisruptionsposingdownsiderisks.

Indianeconomy:Growthoutlook

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Figure7

India'sgrowthoutlookimproveswithstrongprivatecapexexpectations

Percentagegrowthingrossdomesticproduct,yearoveryear

8.0%

Forecast

7.5%

7.0%

OptimisticscenarioMid-rangescenario

6.5%

6.0%

Q1Q2Q4Q1Q2

FY2026-2027

71%to7.3%

FY2027-2028

6.6%to7.0%

Source:Deloitteanalysis.

SustainingthismomentumwillrequiretheinvestmentenvironmenttokeeppacewithIndia'sgrowingcapitalrequirements,asitremainspoisedtobeanimportantengineofglobaleconomicgrowth.

Thenextphaseofreformswill,therefore,havetofocusonmakingiteasier,faster,andmorepredictablefordomesticandforeigncapitaltobeputtoproductiveuse.

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PRIVATECAPITAL–FUELEDECONOMICGROWTHMIGHTBEKNOCKINGONINDIA’SDOORSSOON•PG12

KeyassumptionsforDeloitteprojections

Theassumptionsusedforbaselinescenarioprojectionsare:

Baselinescenario

WiththeStraitofHormuzopen,oilandotheressentialcommoditypriceseasefromcurrentelevatedlevelsbythethirdquarterofthisfiscal,whiletensionsaroundtheRedSeaandBabel-Mandebalsosubside.India’sEUandUStradedealsbecomeoperationalbyearly2027.TheimpactofUS-imposedtariffsonIndiaoverRussianenergypurchasesremains

limitedandshort-lived.

ElNiñoeventsaffectagriculture,butnotenoughtoweakenoveralloutputordriveinflationintoaspiral.

Otherassumptions

FollowingtheSeptemberratehike,theUSFedundertakesonlylimitedadditionaltightening,withtheUSeconomicoutlookremainingbroadlypositive.

BrentpricesmoderatefromcurrentlevelsofaroundUS$100perbarreltowardUS$75toUS$85perbarrellaternextyearasshippingroutesnormalize.

GlobalinflationcontinuestoeaseafterthemonetarytighteningintheWest,lowerenergyprices,andeasingsupply-sidepressures.Therupeeremainssteadybetween96and97perdollar,reducingimport-price

pressuresandinflationexpectations.

Investmentrevivalto

investmentregime

Globaluncertaintydelayedinvestmentdecisionsearlier,butnow

firmsmaybemorewillingtoinvestdespiteit.Buildingmomentumwillrequirecontinuednext-generationreformsthatrespondtotheneedsofalarger,morecomplex,andincreasinglytech-driven

economy.Weseefourareasofparticularimportance:

Improvingeaseofconductingbusiness.Indiahasmade

considerableprogressindigitizingapprovalsandsimplifyingregulations.Thenextphasewillhavetofocusonreducing

theactualtimeanduncertaintyinvolvedinsettingupand

operatingbusinesses—fromlandacquisitionsand

environmentalclearancestoutilities,taxation,contract

enforcement,anddisputeresolution.Greaterregulatory

predictabilityacrosstheinvestmentlifecyclewillbe

particularlyimportantforattractinglong-termdomesticandforeigncapital.

Statestobethenextstageofinvestmentreforms.The

experienceofinvestinginIndiaisultimatelyshapedatthestateandlocallevels.Stateswillhavetocompete

increasinglywithinvestmentoutcomesinmind,includingthetimetakentooperationalizeprojects,infrastructure

quality,availabilityoflandandskills,andtheabilityofexistingbusinessestoexpand.Greaterconvergencein

businessconditionsacrossstateswillalsoberequiredtobroadeninvestmentbeyondestablishedindustrialhubs.

Movefrominfrastructurecreationtoinvestmentecosystems.

Infrastructurebuiltoverthepastseveralyearswillhavetobeleveragedtodevelopintegratedindustrialclustersaround

ports,freightcorridors,logisticsnetworks,andurban

centers.Strategicsectorssuchaselectronics,semiconductors,cleanenergy,andadvancedmanufacturingwillrequire

ecosystemsthatconnectlargefirmswithsuppliers,skills,

technology,researchinstitutions,andexportmarkets.Theroleofmicro,small,andmediumenterpriseswillbecritical—somethingweanalyzedinaprevious

piece

.

PRIVATECAPITAL–FUELEDECONOMICGROWTHMIGHTBEKNOCKINGONINDIA’SDOORSSOON•PG13

Broadenaccesstolong-termcapitalandtechnology.India’sinvestmentrequirementswillbetoolargetorely

predominantlyongovernmentresourcesandbankfinancing.Deepercapitalmarketsandgreaterparticipationby

institutionalandforeigninvestorswillbecriticaltomobilizepatientcapital.

Attractingforeigndirectinvestmentwillhavetobeseennotonlyasasourceoffinancingbutalsoasameansofaccessingtechnology,globalsupplychains,andmarkets.Duringtimesofglobalvolatility,appropriatefinancial-marketmeasures

willalsobeimportantformaintaininginvestorconfidenceandlimitingdisruptionstocapitalflows.

TherecentFCNR(B)measuresbytheReserveBankofIndia(termdepositsheldbynonresidentIndiansinpermitted

foreigncurrenciesinIndianbanks)provideanexampleof

howsuchinterventionscanhelprestoreconfidence.The

specialswapschemehelpedattractsubstantialforeign-

currencyinflows,supportedforeignexchangereserves,andeasedpressureontherupee.11

Now,acombinationofdeeperdomesticcapitalmarketsandcrediblepolicyinterventionsduringperiodsofexternalstresswillbeimportanttoensurethattemporaryfluctuationsdo

notconstrainlonger-terminvestmentambitions.

The1991reforms12expandedwhereandhowbusinessescould

invest.Futurereformswillhavetomakeiteasier,faster,andmorepredictabletoputcapitaltoproductiveuse,whichwillbe

instrumentaltotranslatingtoday’sgrowthopportunitiesintosustainedinvestmentmomentum.

BY

Dr.RumkiMajumdarDeloitteIndia

DebdattaGhatakDeloitteIndia

ENDNOTES

1.InIndia,fiscalyearsstartonApril1andendonMarch31thefollowingyear.Forexample,thecurrentfiscalyearwouldbedenotedasfiscalyear2026to2027,whichbeganonApril1,2026,andwillendonMarch31,2027.Similarly,thefiscalisdividedintofour

quarters,thatis,ApriltoJune,JulytoSeptember,OctobertoDecember,andJanuarytoMarch.

2.India’sMinistryofStatistics&ProgrammeImplementation,“

Quarterlyestimatesofgrossdomesticproductforthefirstquarter(April–

June)of2026–27

,”pressrelease,PressInformationBureau,Aug.31,2026.

3.DuvvuriSubbarao,“

CanIndiasustainitsrise?

”InternationalMonetaryFund,September2026.

4.DatafromCentreforMonitoringIndianEconomy.

5.DatafromvariouspressreleasesbyPressInformationBureau.

6.TheGovernmentofIndia,“

Reportofthetaskforce:NationalInfrastructurePipeline(NIP):VolumeI

,”accessedSept.28,2026.

7.CentreforMonitoringIndianEconomy,“

Economicoutlook

,”accessedSept.28,2026.

8.InternationalMonetaryFund(AsiaandPacificDepartment),“

India:2024ArticleIVconsultation:Pressrelease;staffreport;and

statementbytheexecutivedirectorforIndia

,”IMFCountryReports2025,