Positive impactEconomy HIGH IMPACT

India needs to step up public investment to attract private investments: Working paper by EAC-PM

Economic Times 1 hr ago·12 Aug 2026, 1:52 pm

A working paper by the Economic Advisory Council to the Prime Minister (EAC-PM) suggests that boosting public investment is crucial for attracting private capital into the economy. The report argues that the government must lead the way by stepping up spending, which would create a more stable environment for private firms to grow and invest.

This matters to investors because a surge in public spending often signals a positive outlook for the broader market. It can improve infrastructure and business sentiment, potentially benefiting a wide range of sectors. However, it also highlights the need for continued policy support to ensure that private sector growth keeps pace with government initiatives.

Investors should watch for upcoming government budgets and policy announcements. Any concrete steps taken to increase infrastructure spending or support R&D could provide a significant boost to the market. Keeping an eye on how the government plans to balance public and private investment will be key.

Excerpt from Economic Times

In a working paper titled ‘An Investigation Into Corporate Profits and Investment’, co-authored by Prof S Mahendra Dev, chairman of EAC-PM, joint directors of EAC-PM Dr Sri Vatsa Sehra and Dr KK Tripathy and deputy director of EAC-PM Kamil KPS Bhullar, EAC-PM called for policy support to encourage innovation, enahnce…
Read the original at Economic Times

Key takeaways

  • Category: Economy.
  • AI reads the tone as positive (potentially bullish) for the stock.
  • Flagged as a high-impact, market-moving story.

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Summary & analysis by DocStoX. Full story at Economic Times.

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India needs to step up public investment to attract private investments: Working paper by EAC-PM