MyVoice: Views of our readers 30th October 2025

States competing for the investment pie

This refers to your editorial ‘Private investment revival: Govt must stay the course on reforms’. There is no denying the fact that the present government is more proactively engaged in attracting foreign and private investments with an eye on structural reforms to facilitate a vibrant investment flow. Incidentally, a sense of competition prevails among states as they bid to woo private investments.

But some states like Karnataka are unable to live up to the expectations of investors’ confidence owing to poor and deteriorating infrastructure facilities due to which many existing companies are planning to relocate. The recent comments by Priyank Kharge, blaming the Centre for diverting the investments meant for Karnataka to Gujarat and Assam are mischievous, and without any rationale.

K V Raghuram, Wayanad

Private sector investments soar

This refers to “Private investment revival: Govt. must stay the course of reforms” (THI Oct 29). Earlier, private sector investments were low due to a confluence of structural inefficiencies, policy unpredictability and low consumer demand. Despite commendable macroeconomic indicators, investor sentiment remained cautious, particularly in sectors like manufacturing and infrastructure, long perceived as high-risk and low-yield ones. However, recent data signal a paradigm shift: private sector investment has surged, catalysed by fiscal, control, inflation containment, and targeted reforms.

Manufacturing, historically India’s critical weak sector, has finally garnered substantial capital inflows, given its multiplier effect on employment and exports. Electricity projects too witnessed significant investment, though systemic issues persist. Free electricity schemes and delayed government payments have eroded investor confidence, necessitating urgent solutions. The private sector investments in infrastructure creation—highways, ports, energy grids—have not been adequate to share the burden of the governments, due to long gestation periods, uncertain returns, and delays & problems in land acquisitions.

The recent uptick in consumer demand, spurred by generous income tax relief and the rollout of GST 2.0, has energised market dynamics. But this surge risks tilting the balance toward excessive consumption at the expense of household savings—a trend detrimental to long-term capital formation. To sustain investor momentum, the government must deepen structural reforms, ensuring policy continuity, fiscal discipline, and a calibrated equilibrium between consumption and savings.

Dr O Prasada Rao, Hyderabad

Focus on sustaining growth rate

This is further to your editorial “Private investment revival: Govt must stay the course on reforms”(Oct 29). During the pandemic period and post the epidemic, a sluggish private investment has impacted the economy thereby raising alarm due to a rise in unemployment. But the recent sudden rise in private investment fuelling growth in manufacturing sector and infrastructure raise hopes of good times ahead and augurs well for the country’s economy.

When India is striving for self-reliance and industrial maturity in every sector, the surge in private investments after huge Income-tax relief and slashing GST rates not only makes sound economic sense but also symbolises a balanced and forward-looking approach to sustain the growth rate.

K R Srinivasan, Secunderabad-3