Capital Formation and Foreign Investment

Sebastian Morris ()

Chapter Chapter 4 in Macroeconomic Policy in India Since the Global Financial Crisis, 2022, pp 51-60 from Springer

Abstract: Abstract In this chapter, we bring out the trends in gross capital formation, and in foreign investment both FDI and FII. Gross capital formation has been muted its share falling from the high levels achieved in the “Tiger Period” to levels around 32%. And the share of the private sector had fallen from the high levels reached. The story of reforms since 1991–92 has been one of the shares of private corporate sector rising. Both portfolio and direct investments have been modest or nearly stagnant though showing much volatility. FDI has generally followed growth. In the period since 2011–12, they mirror the overall slowdown and the fall in the rate of gross capital formation.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-981-19-1276-4_4

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DOI: 10.1007/978-981-19-1276-4_4

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