PM Modi Urges Private Sector to Step Up as Government Raises FY27 Capital Expenditure to Rs 12.2 Lakh Crore

PM Modi Urges Private Sector to Step Up as Government Raises FY27 Capital Expenditure to Rs 12.2 Lakh Crore​

PM Modi Calls for Bold Private Investment to Drive Innovation-Led Growth​

New Delhi, February 15: Prime Minister Narendra Modi on Sunday called on India’s private sector to step up investments and lead the next phase of innovation driven, globally competitive growth, as the government sharpens its focus on capital expenditure and long term infrastructure creation.

In a written interview, the Prime Minister said that after years of aggressive public investment and structural reforms, the time has come for corporate India to respond decisively. He emphasized that policy can only create an enabling framework and that sustained transformation now depends on bold private participation.

FY27 Budget Marks Next Level of Growth Push​

Highlighting the recently unveiled Union Budget for FY27, Modi described it as the next level in India’s development journey. The Budget increases capital expenditure to Rs 12.2 lakh crore, representing a five fold rise compared to 2013 levels.

The allocation reinforces the government’s strategy of prioritizing infrastructure creation, logistics expansion, and investment in sunrise sectors. Spending has been directed toward railways, roads, digital infrastructure, and energy networks, alongside measures aimed at easing compliance and improving credit flow to stimulate economic momentum and job creation.

Over the past decade, the government has significantly increased spending on highways, railways, ports, airports, digital networks, and energy systems to attract private investment and enhance medium term productivity. According to the Prime Minister, this public investment push has laid the foundation for sustainable growth.

Private Sector Yet to Fully Unleash Investment Momentum​

Despite the strong public capex cycle, Modi noted that the private sector has not yet fully unleashed its investment momentum. He urged Indian companies to invest more aggressively in research and development, adopt frontier technologies, deepen supply chain capabilities, and compete on quality and productivity.

He stated that while incentives and tariff preferences can catalyze growth, long lasting competitiveness must be anchored in innovation, efficiency, and scale.

Sharing Productivity Gains Key to Sustainable Growth​

The Prime Minister stressed that rising productivity must translate into broader economic benefits. He said gains should be shared fairly between workers, shareholders, and owner managers to ensure durable and socially legitimate growth.

He added that rising real wages, skill upgradation, and stable employment strengthen domestic demand and social cohesion, which in turn support long term investment cycles.

Focus on Viksit Bharat 2047​

Modi asserted that the State has concentrated on strengthening infrastructure, ensuring macroeconomic stability, implementing regulatory reforms, and expanding trade access.

He said that the next leap toward Viksit Bharat by 2047 will depend on how boldly Indian enterprises invest in innovation, build long term capacity, and position themselves as globally competitive, technologically confident, and socially responsible engines of growth.

With the government’s capital expenditure push firmly in place, the spotlight now shifts to corporate India to match reform momentum with decisive investment and innovation led expansion.