{"id":262985,"date":"2023-10-05T19:32:36","date_gmt":"2023-10-05T14:02:36","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=262985"},"modified":"2023-10-06T20:59:38","modified_gmt":"2023-10-06T15:29:38","slug":"investment-the-dog-that-didnt-bark-on-investment-level-in-india","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/investment-the-dog-that-didnt-bark-on-investment-level-in-india\/","title":{"rendered":"Investment: The Dog That Didn\u2019t Bark \u2013 On investment level in India"},"content":{"rendered":"\n

Source: <\/strong>This post has been created based on the article \u201cInvestment: The Dog That Didn\u2019t Bark\u201d<\/strong> published in the Times of India<\/strong> on 5th<\/sup> October 2023.<\/strong><\/p>\n

UPSC Syllabus Topic: GS Paper 3, Indian Economy \u2013 Indian Economy<\/strong> and issues relating to planning, mobilization of resources, growth<\/strong>, development and employment.<\/p>\n

News<\/strong>:\u00a0 The article discusses the growth of Investment in the post-pandemic Indian economy and the role of the various sectors in fueling this growth.<\/p>\n

The growth rate of the First Quarter of FY24 GDP has been calculated at 7.8%. <\/strong>It also means that the gross capital formation, or investment, continued to move upward.<\/p>\n

Investment has shown an increase from \u20b955 lakh crore in 2020-21 to \u20b985 lakh crore<\/strong> in just two years, showing remarkable recovery.<\/p>\n

Investment subset of the expenditure component of GDP (which includes consumption (public and private), investments and net trade) has grown at a faster pace compared to the other components since 2020.<\/p>\n

What are the driving forces behind revival of Investment in India?<\/strong><\/h2>\n

Role of the Industry sector: <\/strong>With a 32%<\/strong> share in total incremental investment<\/strong>, the industry sector is leading the post-pandemic renewal of investments. Initiatives like the PLI scheme have led to growth in investments in the manufacturing sector.<\/p>\n

Public, Private and the Household sector: <\/strong><\/p>\n

Public sector:<\/strong> Has shown a reversal of the declining trend of public investments:<\/strong> Since 2021-22, an additional \u20b91 lakh crore has been invested, on the back of a push by the government.<\/p>\n

Private sector:<\/strong> Private corporate sector investment has already surpassed the pre-pandemic levels.<\/p>\n

Household sector showing rising investment trends:<\/strong> Household investment in physical assets is showing a positive trend with housing loans forming<\/strong> the majority of retail loans<\/strong> in the current fiscal. This is good news for overall investment trends in the household sector.
\nSince this sector reflects conditions in the informal sector<\/strong> to a large extent, it disproves the claim that the informal sector is not doing well.<\/p>\n

What is the future of investment in India?<\/strong><\/h2>\n

Strong Demand Ahead:<\/strong> Order book position of PSUs (which reflects all the orders placed by a company)\u00a0has shown an increase.<\/p>\n

Robust Performance of the Private sector:<\/strong> Private sector announced higher operating profitability.<\/p>\n

Positive overall investment trends in the Household sector<\/strong>.<\/p>\n

Way Forward:<\/strong><\/p>\n

As highlighted by the author, contrary to widely shared perceptions the public sector has been lagging in capital expenditure compared to the private sector. A coordinated participation of the various sectors will ensure the full recovery of capital expenditure in India, which is crucial for economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: This post has been created based on the article \u201cInvestment: The Dog That Didn\u2019t Bark\u201d published in the Times of India on 5th October 2023. UPSC Syllabus Topic: GS Paper 3, Indian Economy \u2013 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News:\u00a0 The article discusses the growth… Continue reading Investment: The Dog That Didn\u2019t Bark \u2013 On investment level in India<\/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":[216,8184,10496],"class_list":["post-262985","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":{"total":6,"cached_at":"","cached_date":1698333574},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/262985","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=262985"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/262985\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=262985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=262985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=262985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}