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India’s private investment demonstrating clear signs of strong revival despite global challenges: DEA Secretary
Oct-05-2026

Department of Economic Affairs (DEA) Secretary Anuradha Thakur has said that private investment in India is demonstrating clear signs of a strong revival despite global economic uncertainties, with capital formation in the first quarter of the current financial year (Q1FY27) growing at its fastest pace in more than three years. She said private companies are committing to new projects, especially in sectors such as power, data centres and metals. She added that banks are also increasing lending to industry, large and medium enterprises, as well as micro and small businesses.

DEA Secretary also highlighted that gross foreign direct investment (FDI) inflows in the country reached $97 billion in FY26, while the positive momentum has continued into FY27, with India attracting around $30 billion in gross FDI during Q1FY27. She expressed confidence in India's ability to attract investment, saying credibility built through sustained fiscal discipline, reforms and deregulation would remain an important strength. Stressing the importance of a consistent and prudent fiscal path, she said ‘measures can be announced, but credibility that our country has earned is one that is gained through sustained efforts’. She also highlighted the durability of India's international economic partnerships, pointing to the signing of several free trade agreements (FTAs) in the last few years.

She further said ‘we have followed this path through steady reform, prudent macroeconomic management. The Centre's fiscal deficit has come down from a high of 9.2 per cent of GDP just five-six years back to a budgeted 4.3 per cent this year, and the fiscal anchor is moving in tune with global trends towards a declining debt-to-GDP ratio.’ Besides, she said inflation targeting, NPAs at multi-decadal lows, strong forex reserves and rating upgrades in the last few months are indications of robust fundamentals.


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