What drives corporate investment?

Corporate investment as a share of GDP in India has declined sharply since demonetisation. This decline persists despite tax cuts and a low-interest-rate regime, suggesting that other factors are at play. The main issue is that smaller firms face higher interest costs, while larger firms are more constrained by demand, making it difficult for them to invest.

Why it matters

India's corporate investment has been declining since demonetisation, and this decline has continued despite tax cuts and low interest rates. This could lead to lower economic growth and reduced investor confidence.

Market impact

Markets & countries in focus

Transmission channels

Likely winners & losers

Explore the intelligence

MeridStreet does not reproduce source articles. The summary and analysis above are generated by MeridStreet from public headlines and its own market model; the original reporting belongs to The Hindu. For information only — not financial advice.