Is sluggishness in investment demand a price we pay for efficiency?

Greater efficiencies in infra sectors and saturation of under-served markets have reduced the need for capital investment; national accounts should capture these in GDP calculations, writes T N Ninan

Could it be that success rather than failure explains, partially, the sustained sluggishness in investment demand — which in turn has affected overall economic growth? Consider, for a start, the demand for heavy trucks, which reportedly fell by 22 per cent in recent months. The principal cause seems to be new rules announced last July, allowing trucks to carry heavier axle loads. That step may have been prompted by the improved quality of highways. Whatever the reason, the same trucks can now carry more freight, so the demand for new trucks has dropped. Meanwhile, manufacturers are looking at re-designing their