Investments rise in June quarter, but still lower than 30% of GDP

Though GFCF growth at 10-year high in constant price terms, but experts say that is overstated

Though investments as a percentage of gross domestic product (GDP) rose year-on-year in the first quarter of 2022-23 (Q1FY23), they are still below the 30 per cent mark that is required to put the economy on a sustained growth path.

Gross fixed capital formation (GFCF) rose to 29.2 per cent in Q1 compared to 28.2 per cent a year ago. However, it was lower than 30.7 per cent in Q1 of pre-Covid period of 2019-20.

But if we adjust it for inflation, GFCF was 34.7 per cent in Q1, which was  higher than the corresponding period of the previous year