Decline in investment stunting India’s growth: D. Subbarao
........“Investment was growing at a rapid pace before the (financial) crisis and that has declined. Today’s investment is tomorrow’s production capacity—that is the most worrying part,” Subbarao said. He was speaking at National University of Singapore’s (NUS) Business School. Subbarao, who retired as the central bank’s 22nd governor, said investments had declined because of governance issues and infrastructure constraints. “India is unique among the countries in the world that we are a supply-constrained economy, and the biggest supply constraint is infrastructure,”..........
1 comment:
Dr Subba Rao, in his inimitable style laid bare the concerns and prospects of the Indian economy. That India's growth rests more on domestic markets than export markets, says it all. The attention that 'corruption' has been drawing in shaping the future of political agenda is what renders itself for correction over the next five years. But his observation that 'perception is different from reality' should have been 'reality is more painful than perception.'
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