Present capacity utilisation should propel private investment: CII Prez

Bengaluru: Given that all sectors today are seeing 75-95 per cent capacity utilisation and on the back of a growing economy, India will soon see significant private investments coming into both - manufacturing and services sectors, Confederation of Indian Industry President R Dinesh told DH during an exclusive interaction. 

This comes at a time when several banks have reported a slow corporate credit offtake in the current fiscal as a continuing trend from the past fiscal, indicating that private investments are yet to pick up. However, Dinesh observed, ”There is a significant strength in the balance sheets of all the corporations so right now they have the cash to invest.”

With a conducive policy environment (like the credit guarantee scheme by the government), what the Micro, Small and Medium Enterprises now need to grow is some handholding by the government and/or large corporates to transition in terms of digital, sustainability or geopolitical risks, he suggested.

President CII R Dinesh at an interview with DH in Bengaluru on Thursday.

He sees the infrastructure sector, which has kickstarted the growth story in India, will continue to get attention both from the government and the private sector. Dinesh sees Union Budget 2024 will have a continued focus on infrastructure support and ease along with the cost of doing business in India.

Underscoring the importance and focus on responsible artificial intelligence (AI), Dinesh argued that the technology will not have any negative impact on job creation. “In fact, it must augment and increase opportunities for India,” he said.