FM urges India Inc to unleash animal spirits

Finance Minister Nirmala Sitharaman on Saturday urged India Inc to unleash “animal spirits” and bring in fresh investment to make India one of the fastest-growing economies of the world, reported PTI. Animal spirits, a term coined by British economist John Maynard, describes how people arrive at financial decisions in times of economic stress or uncertainty.

“I would like now to see private investors and private industry in India coming forward with that so-called animal spirits to show that it is possible for India [to be] one of the fastest-growing economies,” she said at an All India Management Association event. “We need capacities to be ramped up, we need expansion, we need more production of very many such products, which are so required for the economy.”

Sitharaman said that the government has taken several steps, including a reduction in the corporate tax rate, to facilitate investment. The corporate tax rate was cut down by almost 10% in September 2019. The finance minister said that following the rate cut, she has been waiting to see greater investment from the private sector in India.