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Corporate investment has been sluggish this past decade despite significant improvements in enabling factors – profitability, bank bad debt and corporate indebtedness. What explains this anomaly? The problem, say Shishir Gupta and Rishita Sachdeva, is mainly structural. The share of corporations in the national economy today is 12 per cent lower than its peak of 88 per cent a decade ago, mainly on account of stagnating global competitiveness. Bringing corporate investment back to its peak level requires reforms that improve the competitiveness of India’s corporations and make them globally competitive so that they account for a bigger share of the economy, the authors argue here.
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The second edit explains why India needs a vibrant tourism sector. Read it here
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QUOTE OF THE DAY
‘When nothing else worked I agreed to go in. Those jawans were big in size and the pipes were too small’
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