Rising passive incomes: Companies favour financial investments over assets

A shift in focus towards private investment is required to sustain the growth momentum. This should be a concern for policymakers

The Indian economy has faced a number of shocks in recent years — both strategic and exogenous. These are argued to have had an impact on the structure of the economy and on the forms of organisation of economic activity. For instance, it is suggested that these shocks may have resulted in a negative impact on the unorganised or informal sector, implying an expansion in the formal sector. Given the challenges in measuring the scale of economic activity in the informal sector, such hypotheses are difficult to test. However, recently initiated efforts for gross domestic product (GDP) base revision, along