Decline in Private Investment in India: Issues and Policy Recommendations
Domestic private investment has declined by 1.4% in the third quarter (Q3) of FY 2024-25 as compared to the second quarter (Q2). This decline reflects fears of high input costs and slowing growth rate. However, state governments have promoted an increase in public investment.Private investment in India increased significantly after economic reforms in the late 1980s and early 1990s.
Public investment was high before liberalization.