unit-5-monetary-and-financial-resources

Unit-5 Monetary and Financial Resources

This unit discusses these aspects which have a crucial bearing on the flow of monetary and financial resources needed for the development of the economy.

What has been the long-term behaviour of investment in India? What change has occurred in it during the last few years?


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Learning Pundits Content Team

Written on Jun 26, 2019 3:45:40 PM

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.



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