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Rajiv Kumar Flags Private Investment as Key for India to Achieve Double-Digit Growth
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CNBC TV18•07-10-2026, 19:57
Rajiv Kumar Flags Private Investment as Key for India to Achieve Double-Digit Growth
- •Former Niti Aayog Vice Chairman Rajiv Kumar stated that India's push towards double-digit economic growth heavily relies on boosting private sector investment.
- •Kumar emphasized that India must transition from a regulatory state to a promotional state by reducing compliance burdens and ensuring policy predictability.
- •He noted that infrastructure and innovation have been the defining features of Prime Minister Narendra Modi's 25 years in government.
- •Cooperation between the central and state governments is viewed as critical because businesses ultimately invest and operate at the state level.
- •While the RBI's 7.1 percent growth forecast for FY27 is achievable, higher interest rates and global market fragmentation pose potential headwinds for smaller enterprises.
Key Questions Answered
Rajiv Kumar stated that pushing India's growth towards double digits depends increasingly on private investment, with the government providing public goods like infrastructure and skills while private enterprise takes the lead in expansion.
Kumar believes that the Indian state must transition from a regulatory state to a promotional state by reducing compliance burdens, ensuring policy predictability, and providing zero retroactive action.
Kumar described the target as a bit aspirational because capacity expansion is not happening at the expected pace, smaller enterprises face pressure from higher interest rates, and external factors like El Nino could weigh on growth.
