Even going by the government’s growth figures, private investment is shrinking at an increasing pace—by 1.9% between January and March, and by 3.1% between April and June. When he entered office, Prime Minister Narendra Modi confronted a slowdown in private investment that had brought India’s growth down from near double digits in 2010 to around 5 to 6% in 2014. He and his economic team decided then that public spending was the answer. There are two reasons for India’s dangerous investment gap. He’s thus focused more on pushing public investment than promoting the sustained deregulation and reform—to labour and environmental rules in particular—that would restore investor confidence.

Source: Mint October 24, 2016 02:48 UTC