India is seeing a drop in the total amount of investment as part of GDP which is central to economic growth. Today, this stands at nearly 32% now from the earlier 39% in 2008 till 2011. We can surely bounce back but at the moment, signs are weak.
Does a global economy buoyed by substantial demand despite the Omicron indicate an optimistic 2022? Is India seeing a K-shaped recovery with various groups and industries recovering much more rapidly than their counterparts? Has India found its pre-2016 growth trajectory with an average growth rate at 5% over the next three years?
I think maybe not. Primarily because year on year when we arrive at this number, both the formal and informal sectors are somewhat taken at par which is misleading. Considering the size of latter is shrinking, about time time we snap out of this calculation model and project real numbers. Another important reason is a drop in the total amount of investment as part of GDP which is central to economic growth. Today, this stands at nearly 32% now from the earlier 39% in 2008 till 2011. We can surely bounce back but at the moment, signs are weak.
