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private sector investment: Private investment not broad-based, will follow international patterns: Arthur D Little


New Delhi: India’s private sector investment pickup will not be broad-based and will follow the pattern of international investments in the country, said a top functionary of management consultancy firm Arthur D Little.

“Private capex will not be so spread out across sectors. Those sectors where international players have come in, you will see private capex coming in because there will be support infrastructure required for those large industries,” Thomas Kuruvilla, managing partner of Arthur D Little Middle East and India, told ET.

Experts have been pointing out that private investment will be the primary driver of economic activity in the coming fiscal year.

“We have many international investors coming into India, like Apple. In Saudi Arabia, people cite examples of companies like Apple and others coming to India. Saudi Arabia was resisting to come to India, but now they’re willing to come,” Kuruvilla added.

The consultancy firm, in its latest report, pointed out that India could become a global auto hub by 2035, with the industry growing to $1 trillion.

Kuruvilla pointed to a shift in international investment away from services towards manufacturing and financial markets. “International investments are coming in the financial sector and manufacturing and not in services now because there is a feeling that the cost of manpower in India is going to go up,” he added.Among the manufacturing sector, he noted that the focus would be on automotive, telecom and energy.“I think automotive, healthcare, maybe in three, four years down the line, if this momentum continues, agriculture will also attract a lot of investment from European investors,” said Brajesh Singh, president, Arthur D Little India, highlighting that government initiatives like the Pradhan Mantri Jan Arogya Yojana had also made healthcare an attractive destination for foreign capital.

Commenting on the geopolitical developments, Kuruvilla said, if anything, the scenario has made India’s position much better, as the country had taken a neutral stance.


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