Govt, India Inc must work in tandem for explosive growth

The number of India’s high-net-worth individuals (HNWIs), those with assets exceeding $10 million, rose by 6 per cent in 2024, reaching a total of 85,698. According to the latest edition of ‘The Wealth Report 2025’ released by global property consultant Knight Frank, this marks a significant increase from 80,686 in the previous year. Furthermore, the number is projected to climb to 93,753 by 2028.

But, unfortunately, the growing affluence doesn’t reflect in business investment. The government has been urging industry leaders to step up and capitalize on emerging opportunities. Prime Minister Narendra Modi, addressing a post-budget webinar on Regulatory, Investment, and Ease of Doing Business Reforms called upon the captains of industry to take an active role in strengthening the nation’s economic standing; he said that corporate India should not remain “a mere spectator.”

This sentiment has been echoed by Finance Minister Nirmala Sitharaman on multiple occasions. She has repeatedly urged the private sector to increase investments in domestic industries, aligning with the government’s push for economic expansion. Commenting on the lukewarm attitude of the rich towards India’s economic development, veteran banker Uday Kotak recently pointed out a concerning trend: corporate scions appear to be more focused on managing their wealth rather than channeling funds into business expansion and new ventures.

This scenario poses a serious challenge to India’s economic ambitions. While the government has undertaken several measures to encourage investments, persistent hurdles continue to deter businesses from committing to large-scale projects. Issues such as regulatory bottlenecks, complex compliance frameworks, and unpredictable tax policies have dampened investor confidence. One such example is the controversial practice of retrospective taxation, which has historically discouraged foreign and domestic investments alike.

At a time when global supply chains are shifting and countries are seeking stable manufacturing partners, India has a golden opportunity to emerge as a leading industrial hub. The government has implemented policies to improve ease of doing business, attract foreign direct investment (FDI), and encourage startups. However, the response from the private sector has remained lukewarm. Despite India’s significant advantages—including a vast talent pool, a large domestic market, and competitive production costs—corporate hesitation continues to hold back progress.

For India to achieve sustained economic growth, both the government and corporate sector must work in tandem. The government must accelerate key reforms, ensuring a more transparent and investor-friendly business environment. Expediting approvals, simplifying regulatory processes, and assuring policy stability will be crucial in building business confidence.

At the same time, corporate India needs to adopt a more proactive stance. Indian businesses must shed their risk-averse mindset and invest aggressively in innovation, research and development, and new manufacturing capabilities. By doing so, they can not only strengthen their foothold in domestic markets but also make India a formidable player on the global stage.

India’s high-net-worth individuals and corporate leaders must recognize that wealth creation should not be limited to personal portfolios; it should translate into economic expansion, job creation, and industrial growth. Investing in India’s future is not just a business imperative but a national responsibility. If India Inc fails to rise to the occasion, the country risks missing out on a historic opportunity to cement its position as a global economic powerhouse.

The combined efforts of the government and industry can galvanize growth, drive innovation, and create a self-sustaining economy.