Investment roadblock

The most disconcerting part of the second quarter GDP data, released on Wednesday, is not that growth has fallen. True, from an annual rate of 7.7 per cent in April-June, it has dropped to 6.9 per cent in July-September. But 6.9 per cent – even though the lowest in nine quarters – is not bad per se, more so in comparison with how other economies are faring in the current uncertain global environment. What is of concern, however, is investment. Gross fixed capital formation (GFCF) has registered a negative growth of minus 0.6 per cent in real terms for the latest ended quarter.

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