Private investment in India remains subdued despite promising economic prospects, according to Anand Mahindra, Chairman, Mahindra & Mahindra.
Since 2011–12, the share of private investment in GDP has fallen to a "worrying level," jeopardising India's ability to capitalide on its growth trajectory, he noted. "We need to remedy that situation," said Mahindra, in the company's latest annual report.
According to the top executive, the problem is not one of resources—rather, it is one of mindset. Particularly after COVID, Indian companies have become increasingly risk averse and this needed to change.
He added that Mahindra & Mahindra has already announced an investment of Rs 37,000 crore across its auto, farm and services businesses (excluding Tech Mahindra) in F25, F26 and F27. "These investments will, to a large extent, go towards building capacity, with a pipeline of 26 new models/facelifts in the next 5 years," he continued.
Furthermore, Mahindra Finance's loan book crossed the threshold of Rs 1 lakh crore, increasing by 24% over the previous year. The valuation of our 'growth gems' increased over 4x in the last 4 years. The contribution of its services businesses (Mahindra Finance, Tech Mahindra and growth gems) to M&M's net cash generation was almost seven thousand crores over the FY22–24 period.
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