Chennai, Aug 4:
Chief Economic Advisor Dr Anantha Nageswaran on Monday said long-term private capital is essential to meet India’s massive infrastructure needs and sustain economic growth over the next few decades.
Speaking at the CII Tamil Nadu Infrastructure Summit 2026, he noted that government capital expenditure has risen sharply to over Rs 12 lakh crore, with the effective spend nearing Rs 17 lakh crore including state grants. Public investment, he said, had strengthened economic resilience and encouraged private participation.
However, the next phase of infrastructure development would require patient private capital with long-term return expectations. He cautioned that “free” public policy comes at a cost, either to taxpayers or asset quality.
Highlighting water security as a priority amid climate volatility, he said India must treat it on par with core infrastructure. Despite global challenges, the economy grew 7.7% last fiscal, with manufacturing expanding over 10%.
Industry leaders stressed the need for more bankable projects and improved connectivity across Tamil Nadu’s key economic centres.
P Ravichandran, Chairman, CII Southern Region, said while capital availability remained strong, the pipeline of viable infrastructure projects was limited. He emphasised that projects must be designed around sustainable revenue models and cash flows rather than relying primarily on budgetary allocations.
C Devarajan, Chairman, CII Tamil Nadu, called for a connectivity reset linking Chennai, Coimbatore, Hosur, Madurai and Thoothukudi as integrated economic hubs to drive industrial growth and regional development.
Mohan Ramanathan, Convenor, TN Infrastructure Panel, underlined that infrastructure must prioritise quality, sustainability and resilience, adding that future-ready assets are key to enhancing competitiveness, logistics efficiency and overall economic growth.