New Delhi
India spent USD 8 trillion in new investments over the past decade, over half of what the country has done since its independence, according to a report put out by DSP Asset Managers.
Over the last seven and a half decades, that means since India’s Independence in 1947, USD 14 trillion has been spent on investments, including spending on housing by households, infrastructure creation by the government, and private capital expenditure.
India has spent USD 8 trillion on new investments over the last 10 years. The government in each of its annual budgets has been increasing capital expenditure allocations.
As the base becomes large, the investments made in the past decade is expected to repeat itself in the next five years, the DSP report said. The size of India’s annual investments is becoming large enough for it to get your immediate attention, it said.
The report asserted that India has come out of an investment winter. The investment to GDP ratio (measured as Gross Fixed Capital Formation to GDP) peaked in 2011 and remained low until the Covid-led disruption upended the supply chains.
Post-pandemic recovery and a large push through government expenditure, the investments are making a comeback. While the global economic landscape has been a bit wobbly, India has remained a steady ship in choppy waters. The economic growth has been consistently strong with corporate top line and profit growing steadily.
