Investment rate stagnates in last three years: CARE Ratings

The report goes on to say that economic output and growth has not witnessed the expected pick up in the last four years

The country's investment rate as a proportion of its GDP (Gross Domestic Product) has stagnated since FY15. Investment has been on the wane since 2011-12 when it accounted for a share of 34.3 per cent. According to the second advance estimates of the Ministry of Statistics & Programme Implementation, the share of investment to GDP had slid to 28.5 per cent at the end of 2017-18.

The decline in investment has been due to NPA (non-performing assets) overhang, excess capacity in several industries, the high cost of funds and tepid demand conditions.

"Investment in FY15-FY18 was mainly led by public