Finally, the only non-war trough in the investment rate was brought about by the worst-ever floods in 2010-11; it stood at 12.5 per cent. In 1964-65, the investment rate in India was 16.6 per cent, far below than Pakistan’s 21.5 per cent. The impact of the war with Pakistan was felt in in 1972-73, as the investment rate came down to 15.3 per cent. The rate of investment at 18.6 per cent of the GDP exceeded Pakistan’s rate of investment at 17.3 per cent. As for poverty, India is way behind Pakistan, despite higher investment, indicating the less inclusive nature of growth.

Source: The Express Tribune March 01, 2019 05:15 UTC