The gross domestic capital formation (GDCF) in the economy has shown an upward trend ever since the beginning of economic planning in 1950-51. However, there have been breaks in between. In the pre-reforms period the rate of investment as a proportion of GDP went up from 10.0 percent in 1950-51 to 24.8 percent in 1978-79. The increase in the succeeding years was less steep with the rate of investment touching only 26.3 percent in 1990-91. Subsequently in the post-reforms period, the rate of investment experienced a decline, during the decade of 1990s. A major increase occurred in 2004-05 when it crossed the 30 percent mark.