If the Union Budget 2021 was the bold call, then Wednesday’s address by Prime Minister Narendra Modi signals his firm commitment to action and results. There is no longer any scope for a withdrawal or reconsideration.
It is a defining moment for the Indian public sector undertakings (PSUs). Modernize and perform, else perish. The Department of Investment and Public Asset Management (DIPAM) has geared up to streamline the monetization process. Now, it is up to the private sector to take on the management of national assets like stadiums, pipelines, transmission lines and roads. Efficiency gains making the Indian economy productive are reflected in asset pricing by the bourses.
The need of the hour is to inject more debt into the Indian economy but this additional debt needs to sit on the balance sheets of India’s private sector. The call for increased fiscal deficit, that would be clearly enhancing growth, includes the call for the private sector to get its act together.
The Prime Minister is rightly calling on the captains of the Indian industry to rise to the occasion and do their due diligence promptly and deftly as the national assets are monetized for creating additional assets. This churning of infrastructure projects from sovereign debt funds to global private funds lifts global growth itself. Over the next two decades, India would be the largest economy in terms of absorbing physical infrastructure assets on the ground.
This article is the fifth in a series on ‘Minimum Govt, Maximum Governance’. You can read all the articles under this series here
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