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Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Capital productivity remains below pre-pandemic levels, helping explain why private investment has failed to respond more strongly to the government’s push.
Governments, businesses and investors closely watch capital expenditure (capex) and gross fixed capital formation (GFCF), a measure of the net investments in fixed assets within an economy, because investment is expected to create productive capacity, quality jobs and growth. India’s recent investment experience, however, presents a puzzle. Public-sector investment has expanded, investment intentions from companies remain positive in some sectors, yet capital productivity remains below its pre-pandemic level and private-sector participation in investment has weakened.
The private sector's share of GFCF declined from 35.3% in 2021-22 to 32.2% in 2024-25.
Union ministers have repeatedly urged the private sector to raise …
