Private Sector Must Step Up as Government Has Done Most of the Heavy Lifting: ASSOCHAM Chief Sanjay Nayar on India’s Growth Journey

Key Highlights

 

Sanjay Nayar, President of ASSOCHAM (Associated Chambers of Commerce and Industry of India), emphasized the critical need for the Indian private sector to increase its contribution toward national economic growth, highlighting that the government has already undertaken much of the foundational work

 

He recognized the government’s major role in building infrastructure, creating reforms, and setting a conducive policy environment that has laid the basis for sustainable development and industry expansion

 

Nayar called for enhanced private sector investment, innovation, and entrepreneurship to accelerate India’s trajectory towards becoming a developed economy with multi-fold improvement in per capita income

 

He expressed optimism about India’s economic prospects but stressed that the private sector must now “step up” actively in sectors such as manufacturing, technology, MSMEs, and exports to realize the ambitious growth targets

 

The ASSOCHAM President underscored the synergies required between public initiatives and private enterprise to capitalize on emerging opportunities in digitization, green energy, infrastructure, and startups

 

Sanjay Nayar lauded government schemes like Startup India, production-linked incentives (PLIs), and infrastructure development, viewing these as platforms primed for private participation to unleash growth and job creation

 

He highlighted ongoing challenges including credit accessibility, skill development, and technology adoption that the private sector needs to address responsibly alongside policy support

 

The private sector was urged to harness cutting-edge technologies such as AI, automation, and digitization to enhance competitiveness and contribute meaningfully to India’s global economic standing

 

He reiterated ASSOCHAM’s commitment to act as a catalyst in promoting collaboration among industry, government, academia, and civil society for inclusive and sustainable economic progress

 

Government’s Foundation-Laying Role

 

Indian government efforts over recent years have centered on reforming multiple sectors via structural policies, ease-of-doing-business enhancements, infrastructure investments, and export promotion frameworks. Significant achievements include:

 

Nationwide rollout of GST simplifying indirect taxation and boosting compliance

 

Implementation of Vehicle Scrapping Policy to phase out polluting vehicles

 

Initiatives like Digital India enhancing connectivity and service delivery

 

Strategic trade deals such as the India-UK Free Trade Agreement elevating export potentials

 

Supportive schemes fueling MSMEs and startups which form the backbone of the Indian economy

 

Nayar acknowledges these steps as foundational heavy lifting that removed bottlenecks, facilitated market reforms, and created enabling conditions that private enterprise can now exploit.

 

Private Sector’s Crucial Contribution Going Forward

 

Nayar stresses that to achieve visionary national goals such as becoming a $10 trillion economy, multiplier growth in jobs, and technological self-reliance, private businesses must:

 

Increase investment in manufacturing capacity and innovation labs to reduce import dependence and boost exports

 

Accelerate adoption of AI, Industry 4.0 processes, and renewable energy solutions

 

Focus on upskilling the workforce to meet global standards and emerging sectoral demands

 

Strengthen startups by fostering ecosystems rich in mentorship, funding, and market access

 

Facilitate inclusive growth by expanding into underserved regions and fostering rural entrepreneurship

 

Collaborate with government on policy feedback loops and public-private partnerships to ensure holistic development

 

Challenges and Opportunities

 

While the policy environment is favorable, certain challenges hamper private sector growth:

 

Access to affordable and timely credit remains uneven, particularly for MSMEs

 

Skill gaps limit effective technology utilization and productivity gains

 

Infrastructure bottlenecks in logistics and energy impact operational efficiency

 

Competition globally demands sustained innovation and quality standards enhancement

 

However, Nayar views these challenges as opportunities for market solutions and strategic partnerships that ASSOCHAM is keen to support.

 

ASSOCHAM’s Role as Industry Facilitator and Policy Partner

 

Under Nayar’s leadership, ASSOCHAM is committed to:

 

Bridging dialogue between government and industry stakeholders for responsive policymaking

 

Promoting digital transformation and sustainability among MSMEs and startups

 

Organizing knowledge platforms and events to disseminate best practices and foster innovation

 

Supporting skill development initiatives aligned with industry needs

 

Conclusion

 

Sanjay Nayar’s clarion call underscores a pivotal phase in India’s development where the government’s foundational efforts set the stage, but the private sector’s dynamism, investment, and innovation are indispensable to realize the nation’s full economic potential. By stepping up responsibility, embracing technology, and collaborating closely with public initiatives, Indian businesses can accelerate growth, create jobs, and propel India towards developed country status in the coming decades.

 

Sources: Economic Times