FM urges India Inc to unleash animal spirits; make India fastest growing economy

“Government has taken a number of steps including reduction in corporate tax rate to facilitate investment,” FM stated whereas speaking to industry leaders at an All India Management Association (AIMA) event.

“I would like now, to see private investors and private industry in India coming forward with that, so referred to as animal spirits to show that it’s possible for India (to be) one of the fastest growing economies,” she stated.

The expression ‘animal spirits’ was coined by celebrated economist John Maynard Keynes to refer to investors’ confidence in taking action by way of funding.

“We need capacities to be ramped up, we need expansion, we need extra production of very many such products, that are so required for the economy,” she stated.

Post tax reduction, she stated, “I have been waiting to see expansion happening, I’ve been ready to see greater investments from private sector in India.”

To revive growth, the government in September 2019 slashed corporate tax rate by almost 10 percentage points.