IS PRIVATE INVESTMENT EXPECTED TO RISE?

Private investment in India has faced fluctuations, driven by macroeconomic stability, credit availability, public investments, and global trends. Factors like sluggish consumer demand, policy uncertainty, and decreased bank credit growth have impacted investment. However, the government’s Budget 2025-26 tax incentives, lower interest rates, and large-scale infrastructure projects aim to revitalize private investment. 

Last Updated on 12th February, 2025
4 minutes, 46 seconds

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Copyright infringement not intended Picture Courtesy: The Hindu Context: Private investment in India has experienced fluctuations over the years, but experts believe that with the right policies and economic conditions, it is likely to rise again.   About Private Investment   Private investment refers to funds that individuals and companies inject into businesses to expand operations, develop new projects, or purchase equipment. Since India opened its economy in the 1990s, private investment has played an essential role in navigating economic growth. What Drives Private Investment? Macroeconomic Stability: Investors gain confidence from a stable economy with controlled inflation and steady growth. Credit Availability: Easy access to bank credit and lower borrowing costs facilitate business expansion. Research indicates that improvements in the banking sector and credit growth can boost private investment. Public Investment: Government spending on infrast...

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