Interestingly, the survey finds that India's investment rate – investment to GDP ratio – slowdown was "unusual" as so far it was relatively moderate in magnitude, long in duration, and started from a relatively high peak rate of 36% of GDP. It is this fact that the downhill trend of investment rate was linked to the corporate balance-sheet troubles, which may pose a big challenge, according to the survey. Yet because the investment decline has been so gradual, the magnitude of the shortfall so far is relatively less severe – it remains a moderate 21 percentage points, well under the average magnitude". Aditi Nayar, principal economist at rating agency Icra, told DNA Money that a broad-based revival in investment was still two-three quarters away. The survey says policy action by the government could "decisively improve the outlook" for investment reversal that push up India's growth rate to 8%-10%.

Source: dna January 30, 2018 23:26 UTC