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Investment Behavior in India: What led to Investment Slowdown and how to Revive it?

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  • Pravakar Sahoo
  • Ashwani Bishnoi

    (Institute of Economic Growth, Delhi)

Abstract

The importance of investment for improved productivity and economic growth has been well established in both theoretical and empirical literature. Investment slowdown has been the subject of intense debate in recent years. Most of the existing debates have been around aggregate investment but disaggregate investment at institution wise and assets wise may respond heterogeneously with respect to the macro-prudential policy measures. The present study goes in depth to explore the investment dynamics at disaggregate level for the period 2004-2019 in the wake of changing economic environment characterized with active utilization of monetary and fiscal policies, varying monetary transmission effect, economic uncertainty, business environment and financial pressure either by credit short-fall or debt overhang.

Suggested Citation

  • Pravakar Sahoo & Ashwani Bishnoi, 2021. "Investment Behavior in India: What led to Investment Slowdown and how to Revive it?," IEG Working Papers 436, Institute of Economic Growth.
    • Handle: RePEc:awe:wpaper:436
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    References listed on IDEAS

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    Keywords

    India; Investment Behaviour; Monetary policy; fiscal policy; economic uncertainty.;
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