With a depreciating currency and rising inflation, prospects of sustaining investment and economic recovery are likely to get harder. Comment (200 Words)
Refer - The Hindu
Enrich the answer from other sources, if the question demands.
IAS Parliament 2 years
KEY POINTS
· Government sustained the investment tempo even during the novel coronavirus pandemic (2020-21 and 2021-22).
· The National Accounts Statistics provides disaggregation of gross capital formation (GCF) by sectors, type of assets and modes of financing; over 90% of GCF consists of fixed investments.
· The rise in the services sector is almost entirely on transport and communications. The share of transport has doubled from 6.1% to 12.9% during the same period.
· India’s position did go up, from 142 in 2014 to 63 in 2019, but it failed to boost industrial investment, let alone foreign investment.
· The recent upturn in the aggregate fixed capital formation to GDP ratio is positive, though the rate is still lower than its mark in the early 2010s.
· The lack of domestic capacity for essential raw industrial materials and capital goods could prove costly. It will likely test India’s ability to withstand external economic challenges.
· With a depreciating currency and rising (imported) inflation, prospects of sustaining investment recovery are likely to get harder. The deficit on balance of payment is already well above policy makers’ comfort level of 2.5% of GDP.
TK Padhan 2 years
Sir, kindly review pls.
.jpg)
IAS Parliament 2 years
Try to include data to support your arguments and bring coherence in the answer. Keep Writing.
Cibi Siddharth 2 years
Kindly review and provide suggestions sir/mam
IAS Parliament 2 years
Try to include data to support your arguments. Keep Writing.
Aravind R 2 years
Kindly review this mam/sir
IAS Parliament 2 years
Try to provide data regarding share of GDP in agricultural, manufacturing sector. Keep Writing.
K. V. A 2 years
Kindly review
IAS Parliament 2 years
Good attempt. Keep Writing.
