The Economic Survey makes this compelling case, recognising the high positive correlation between private investment and growth that drives exports and creates more jobs. If India aspires to become a $5 trillion economy by 2024-25, it needs to sustain a real GDP growth rate of 8%. “The domestic economy hit a soft patch in the last quarter of 2018-19 as private consumption, the key driver of GDP, turned weak. This along with subdued new investment pipeline and a widening current account deficit have exerted pressure on the fiscal front. But there is a distance to go.The biggest challenge to private investment is bad loans in the banking system.

Source: Economic Times July 04, 2019 09:33 UTC