{"id":206078,"date":"2022-09-15T19:40:45","date_gmt":"2022-09-15T14:10:45","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=206078"},"modified":"2022-09-15T19:40:45","modified_gmt":"2022-09-15T14:10:45","slug":"is-the-long-wait-for-private-investment-over","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/is-the-long-wait-for-private-investment-over\/","title":{"rendered":"Is The Long Wait For Private Investment Over?"},"content":{"rendered":"\n<p><strong>Source<\/strong>&#8211; The post is based on the article <strong>\u201cIs the Long Wait For Private Investment Over?\u201d <\/strong>published in <strong>Times of India <\/strong>on <strong>15th September 2022<\/strong>.<\/p>\n<p><strong>Syllabus: <\/strong>GS3- Indian Economy.<\/p>\n<p><strong>Relevance<\/strong>&#8211; About investment<\/p>\n<p><strong>News- <\/strong>The article explains the current scenario of investment in India.<\/p>\n<p>There are favourable macroeconomic indicators that can lead to higher investment in the fiscal year 2023.<\/p>\n<h5><strong>What are the macroeconomic indicators which are not favourable?<\/strong><\/h5>\n<p><strong>Gross Fixed Capital Formation<\/strong> that is private investment, was at its peak at 34.3% in 2012-13. It has been in the range of 30-32% since that time.<\/p>\n<p>Share of the manufacturing sector in GDP remains below the stated government policy of 25%. It was 17.4% in 2020.<\/p>\n<p><strong>Labour force participation rate<\/strong> was below 40% in 2022.<\/p>\n<h5><strong>What drives private investment in India?<\/strong><\/h5>\n<p>Government capital expenditure is insignificant to drive private investment.<\/p>\n<p>External causes had a negative impact on the investment cycle in recent years. It explains the need for durable growth and demand outlook to spur private investment.<\/p>\n<h5><strong>What are the factors conducive to private investment?<\/strong><\/h5>\n<p>Balance sheets of both corporates and banks have improved<strong>. <\/strong>Both <strong>corporate debt to GDP ratio <\/strong>and <strong>NPAs<\/strong> have declined.<\/p>\n<p>Central government policy of high capital expenditure can create a strong multiplier effect for the economy.<\/p>\n<p>Corporate profitability is at a high despite higher input cost pressures.<\/p>\n<p><strong>Capacity utilisation<\/strong> is improving. It was at 74.5% in March 2022 and surpassed the pre-pandemic level.<\/p>\n<p>At 15.1% in July 2022, credit growth is highest in nearly 2.5 years.<\/p>\n<p>According to<strong> RBI\u2019s Industrial Outlook Survey<\/strong>, business confidence among corporates has recovered well above pre-pandemic levels.<\/p>\n<p><strong>Atmanirbhar Bharat policy<\/strong> can offset global slowdown.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source&#8211; The post is based on the article \u201cIs the Long Wait For Private Investment Over?\u201d published in Times of India on 15th September 2022. Syllabus: GS3- Indian Economy. Relevance&#8211; About investment News- The article explains the current scenario of investment in India. There are favourable macroeconomic indicators that can lead to higher investment in&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/is-the-long-wait-for-private-investment-over\/\">Continue reading <span class=\"screen-reader-text\">Is The Long Wait For Private Investment Over?<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10496],"class_list":["post-206078","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700795227,"cached_date":1700999644},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/206078","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=206078"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/206078\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=206078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=206078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=206078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}