The failure of private investment to perk up, has been a source of worry. Private investment scores have essentially declined since 2012. Despite the government’s cajoling, through PLI based incentives, and the slashing of corporation tax, inhibitions remain amongst a sceptical business constituency to take the punt and expand capacity. 

One reason for the blame is possibly low household consumption, a trend that has now lasted for nearly a decade, particularly after the Covid 19 pandemic. Another reason, as some economists have argued, are structural problems that endure in areas such as labour reforms. This podcast explains.