Surjit Bhalla Urges India to Raise Investment Ratio for 8% Growth

Former Economic Advisory Council member Surjit Bhalla stated that India must increase its investment-to-GDP ratio to 34-35% to achieve an 8% economic growth rate. Speaking at the Elara India Dialogue 2026, Bhalla noted that the current ratio of 28-30% only supports growth of approximately 6.5%.

Bhalla argued that while government infrastructure spending provides immediate boosts, private investment is essential for long-term productivity and sustainability. He highlighted a decline in private investment of 5-7 percentage points since 2011-12.

Identifying the 2015 Bilateral Investment Treaty as a primary deterrent to foreign capital, Bhalla described it as the "most anti-investment treaty anybody in the world has ever seen." He called for regulatory reforms and improvements in the ease of doing business, asserting that the government itself acts as the primary regulator of the investment climate through its policies.