The Confederation of Indian Industry (CII) has projected India’s real GDP growth to remain in the range of 6.4% to 6.7% in the financial year 2025-26, reiterating the country’s position as the fastest-growing major economy globally.
Speaking at an industry event in New Delhi on Thursday, CII President Rajiv Memani observed that India continues to be a bright spot amid heightened global economic and geopolitical uncertainty. “Competitiveness is India’s passport to prosperity. But it must be earned through reform, innovation and trust,” Memani said.
He added that CII remains committed to partnering with the government and industry to strengthen India’s position as a competitive and globally connected economy. “India’s internal growth momentum is resilient enough to weather external shocks,” he said.
Memani stressed that India must anchor its growth in competitiveness, driven by scale, productivity, innovation and resilience, especially at a time when global trade and technology dynamics are changing rapidly.
To meet the country’s developmental and infrastructure requirements while maintaining fiscal prudence, CII has suggested calibrated disinvestment of public sector enterprises (PSEs). The industry body noted that PSEs account for nearly 10% of India’s total market capitalisation, estimated at around ₹55 lakh crore.
“Divesting about 10% of this market capitalisation could potentially generate ₹5 lakh crore, which could be channelled towards enhancing public capital expenditure, retiring government debt, setting up a Sovereign Wealth Fund for overseas strategic investments and acquiring critical technologies,” Memani said.
To address the challenges faced by India’s ‘missing middle’, CII has proposed a Capital Support Scheme aimed at assisting small and medium-sized enterprises in the manufacturing sector undertaking R&D, technology adoption and job creation.
Further, to improve the cost efficiency of businesses, CII has suggested the formation of a dedicated taskforce to recommend policies for ensuring land availability at affordable rates, thereby strengthening the competitiveness of the manufacturing sector.
Highlighting India’s energy transition goals, CII called for sector-specific strategies, including for mobility, and advocated the proactive creation of Green Hydrogen and Renewable Energy hubs. The industry body also plans to launch a dedicated Mission on Energy Transition to encourage industries to shift towards low-carbon alternatives.
(IANS)
