What drives corporate investment?
Corporate investment as a share of GDP in India has declined sharply since demonetisation, with the fall persisting despite tax cuts and a low-interest-rate regime; smaller firms face higher interest costs, while larger firms are more constrained by demand; reviving investment requires government expenditure to push profitability up
· 8/18/2026, 5:22:08 PM· 2 min read
Corporate investment as a share of GDP in India has declined sharply since demonetisation, with the fall persisting despite tax cuts and a low-interest-rate regime; smaller firms face higher interest costs, while larger firms are more constrained by demand; reviving investment requires government expenditure to push profitability up
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