Why doesn’t Indian private companies invest in the record profit?

What do you need to start building new factories and firms for private companies in India?

It is a question that mixes politicians for years. The GDP’s special investment in the general domestic product, the global financial crisis of 2007, even the world beating ratios of the general economy is in the decline.

After a long hiatus, the investment ratio collected a bit in 2022 and 2023, but the latest information from the leading rating agency, as part of the total investment in the economy, fell by 33%.

The analysis of the executive of the executive, which was listed in the 2,500 listed companies and 8,000, the investment pace of the list, which is not listed, in fact, signed a contract.

Over the years, several economists raised similar concerns about the slowdown of private investments.

Banking magnate Uday box He recently called for young business owners inherited young business owners, strongly sitting in India’s pale “animal spirits” and young business owners inherited young business owners.

Investment advice company values ​​are research, Indian non-financial business, sitting in the amount of 11% of total assets, shows that companies are sitting on the total cash.

So why does India choose to do corporate homes?

In the Urban areas, a low-domestic consumption, delete and imported in some sectors were among the factors that restricted the potential of Indian corporate homes.

However, in addition to closer reasons, the private investment impulse has been low in the event of a “global uncertainty and excess”, celebrated India’s economic survey at the beginning of this year.

Slowdent Special investments have a direct bearing of India’s growth prospects.

Investments in assets such as factories, cars or constructions, as well as general basic capital formation, are 30% of GDP and the second largest contribution after individual consumption.

6.5% of India’s full annual GDP is expected to be sharply as compared to 9.2% of last year. Growth has been marked with a slow consumption account.

Exports, slowdown and US President Donald Trump will be fundamental to hit the long-term growth tariffs of global uncertainty, including global uncertainty tariffs, starting the long-term growth targets.

According to the world’s latest assessments, India will increase by an average of 7.8% to 7.8% to achieve high-income status ambition by 2047.

For this purpose, the key is currently at least 40% of GDP from 33% to 33%.

The government, in turn, has increased the costs, especially in infrastructure. He also cut his corporate tax rates from 22% to 22% to 22% to 22%, and in these years of the year the subsidies were full of billions of dollars. The existence of the bank loan is not a restriction and regulating regulation with regulatory restrictions between 2003 and 2020.

But none of this was developed in corporate India to increase the spending.

According to Sajjid Chinoya, JP Morgan’s chief economist of India is a big problem declaration in the economy to put additional opportunities.

India’s pandemic restoration is unevenly, it is not expanded quickly enough with the consumer class. Thereby shot in the request of goods and services the ability to spend This year, the corporate income increases at a 15-year high level, but also further reduced.

“Only because companies are financially strong, they do not mean that they will automatically invest. If the companies expect good returns,” Chinoy said in an event in Mumbai earlier this year.

Former member of the Prime Minister’s Economic Advisory Council (PMEAC), Rathin Roy pointed to other deep structural issues that hold the investment appetite.

“Entrepreneurs produced energy to produce goods that can create a new demand. This is a classic example of this – the untreated inventory in urban areas, but to enter two and three cities in urban areas and go to two and three markets and go to new markets.”

He also accepted Mr Kotak’s business places and developing financing institutions, the growing trend of the growing trend, which became commodity managers.

“Jobs discovered in the COVID-19, they do not need to do money to make money. It simply can multiply and reproduce something new,” he said. And these investments do not occur only in the internal stock exchange. “Much money is just running back from India and returning to another place.”

According to the ICRA, things can turn from one corner.

$ 12 billion in income tax relief to individuals in the federal budget, “Augurs is a good income tax relief to support the domestic consumption requirement.”

The Central Bank of India also says more private companies show that compared to this year compared to this year, although the results of this intention are being done.

Uncertainty related to global trading tariffs can delay the expected investment board of investment, according to the ICRA.

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