Noting that there is a high flow of foreign capital and public investment, Finance Minister Arun Jaitley on Saturday underlined that private investment is yet to recover.
“Private investment is still a challenge,” he said at a seminar on debt recovery at the State Bank of India Academy.
His comments come at a time when the Indian economy is expected to grow at close to 8 per cent this fiscal but private investment continues to remain muted.
The Minister also urged the banking sector to support private investment in order to boost growth.
“The private sector needs to expand in a big way. It needs to invest and that’s when all engines of economy will start firing,” he said.
But he noted that the delay in repayment of loan by defaulters due to litigation impacts the banks in financing other projects.