Indian Companies Reluctant to Invest Domestically Despite Tax Cuts and Record Profits
• India's largest companies have seen profits surge over 30% annually since the pandemic, yet private investment remains weak with capital outflows nearly matching FDI inflows. • Chief Economic Adviser V. Anantha Nageswaran and Finance Minister Nirmala Sitharaman publicly questioned the reluctance amid tax incentives, infrastructure push, and record corporate cash reserves. • Experts cite safety preferences by family-run businesses, funds parked in family offices by heirs, and high perceived political-regulatory risks as key barriers.
livemint.com