During a panel discussion at FICCI’s 97th AGM and Annual Convention, Seth emphasised the government’s commitment to capital expenditure despite sectoral slowdowns. “Even this year, we should be around the same percentage (as last year’s 95% capex achievement).”
Seth reaffirmed confidence in the 6.5-7% GDP growth projection for FY25 as estimated in the Economic Survey. “E-way bills, invoices in October do not indicate any downside risk to the 6.5-7% GDP growth in FY25,” he noted, adding that while some sectors show a slowdown, others are experiencing increased demand.
On inflation, Seth identified food prices as a challenge due to erratic climatic conditions but stated that “outside of food prices, inflation is not so much of a challenge.”
Highlighting global uncertainties, Seth pointed to geopolitical tensions in Ukraine and the Middle East, coupled with a slowdown in Chinese demand, as key concerns.
“If China’s domestic demand does not revive, it could pose a challenge for all economies,” he opined, urging India to focus on building long-term capabilities to emerge as a global manufacturing hub.
Regarding private sector involvement, Seth expressed optimism about the ₹1-lakh crore R&D fund, urging industry leaders to engage in frank discussions with the government to identify friction points.
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“The government’s ask is to partner with us and have a sector-by-sector dialogue on the way forward,” he said, adding that operationalisation of the fund is expected before the next Union Budget.
(Edited by : Shoma Bhattacharjee)
