The Survey said the steps taken to stimulate investments—recapitalization of state-owned banks and insolvency reforms to tackle the issue of toxic assets in the banking system—need to be followed up with complementary measures. Photo: BloombergPolicymakers need to stimulate investments as a decline in investment is more detrimental to the economy than a fall in the savings rate, the Economic Survey 2017-18 tabled in Parliament on Monday said. The Survey also said that India’s investment slowdown is not yet over although it has unfolded much more gradually than in other countries. The Survey noted that the cumulative fall between 2007 and 2016 has been milder for investments than savings, but investments have fallen to a lower level. The ‘animal spirits’ need to be conjured back,” the Economic Survey said.

Source: Mint January 29, 2018 16:18 UTC