Public Investment Cannot Support Capex Drives

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Capital expenditure (Capex) is a key part of the government’s plans to improve India’s economic growth, and Assocham is emphasizing that it shouldn’t be driven largely by public investment. Assocham’s recently appointed President Ajay Singh, also the chairman and managing director of Spicejet, expressed his belief that the private sector must participate in the economy in order to boost investments.

Mr. Modi has been urging Indian companies to increase investment in the union budget 2023-24. Singh further believes that there will be a significant rise in private investments over the next 2-3 years due to the infrastructure investments by the government. He underlined the importance of public and private collaboration to ensure that capital expenditure needs are fully met.

Aside from emphasizing the need for private investment, Singh has also urged the Reserve Bank of India to put the brakes on its hike in repo rates, suggesting that it could have a negative effect on certain sectors such as housing and automobiles. He also remarked that many MSMEs have been unable to pay their statutory dues on time, and stated Assocham’s request for moderation of charges and interest rate on late payments.

In regards to the aviation sector, Singh insisted on the necessity for lower Value Added Tax (VAT) on Aviation Turbine Fuel (ATF), except in states such as Tamil Nadu, West Bengal, Assam and Delhi, which has already been reduced significantly in most states. Continued progress in lowering VAT would prove beneficial to the sector’s development. Finally, Singh praised the current government’s judicious approach to taxation and promotion of ease of doing business.

Assocham is a leading players in the Indian industry, representing over 400 chambers of commerce and associations across the country. Its activities span multiple industry sectors, including media and entertainment, public health, finance, infrastructure, taxation and information technology. Assocham has been heavily involved in the nation’s economic and social development since its founding in 1925.

Similarly, Ajay Singh is the Chairman and Managing Director at Spicejet, one of India’s major low-cost airlines. He has been responsible for many of the company’s successes since taking over in 2015, and is a decorated leader in the aviation industry and corporate world. He has been recently appointed President of Assocham and is currently working to strengthen and expand the industry body’s reach and impact.