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India Inc's low confidence reason for drop in investments: Analysts

Madan Sabnavis, chief economist at CARE Ratings, said the problem of low investments could be blamed on surplus capacity in the private sector

India Inc’s low confidence reason for drop in investments: Analysts
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Private final consumption expenditure, an indicator for demand, is estimated to see growth fall to 5.8 per cent in 2019-20, from 8 per cent in the previous year

Dilasha Seth New Delhi
Economists attributed the 15-year low investment growth to subdued confidence in India Inc about rate of returns in the future, even as Prime Minister Narendra Modi urged the captains of Indian industry to pump in money.

Former chief statistician Pronab Sen said the confidence among investors was still missing.

“Where investments are concerned, they are always based on forward looking point of view. You need a certain degree of confidence that there will be returns. That confidence is missing. In a situation where demand is collapsing day by day you cannot expect investors to pump in money,” said Sen.

Sen

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