This paper documents the recent slowdown in investment in India and explores its underlying causes. The sharp … investment deceleration has sparked an intense debate about the role of interest rates, as well as business confidence and … economic policy uncertainty. Our results suggest that while explaining aggregate investment activity better than nominal …

This paper documents the recent slowdown in investment in India and explores its underlying causes. The sharp … investment deceleration has sparked an intense debate about the role of interest rates, as well as business confidence and … economic policy uncertainty. Our results suggest that while explaining aggregate investment activity better than nominal …

curbed. The composition of fiscal policy relating to agriculture particularly public investment and subsidies is studied. It … is seen that periods of sustainable deficits are periods of rising public investment in agriculture. ICOR’s are rising … but less in the public sector suggesting externalities. Crowding in of private investment seems likely. Following this the …