Companies need to increase capital investment to take advantage of opportunities: Anand Mahindra

New Delhi. Mahindra Group Chairman Anand Mahindra has said that domestic companies need to increase capital investment to take advantage of growth opportunities available in India and abroad. Addressing shareholders in the company’s 2023-24 annual report, the industrialist said that the interplay of geopolitics and economic relations has strengthened India’s position in the post-COVID-19 pandemic era. He said that India’s emerging role as a key region in securing supply chains in various industries opens the door to growth within the country and expansion beyond.

Mahindra said, “How do we in private industry ensure that we take advantage of this opportunity? ‘Ask not what your country can do for you, but what you can do for your country’… In that spirit I would argue that the most important thing industry can do at this critical juncture is to increase private investment.” He said private capital investment is the key to taking advantage of this opportunity as it is a key element in driving growth, employment and demand. Mahindra said private investment rose from about 10 per cent of GDP to nearly 27 per cent after the economic reforms of the 1990s.

However, private investment as a percentage of GDP has been falling at alarming levels since 2011-12. “We need to correct that situation,” he said. Mahindra said Indian companies have become increasingly risk averse, especially after the Covid-19 pandemic, and are sticking to tried and tested methods rather than breaking new ground. “This is understandable to some extent, but when the opportunity is there, when private industry can make a significant difference, it is time to put aside the fear of failure and move ahead with confidence,” the industrialist said. Mahindra said it is undoubtedly a good time to be an Indian company.

Disclaimer: CricketInFocus has not edited this news. This news has been published from PTI-language feed.

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