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Why does India need revival of investments?

  • Highlights

  • Infrastructure development is needed

  • Employment is created with investment

  • Inflation control

  • It provides inclusive economy

A vibrant economy is an invisible factor, which is critical for the well-being of our society. Other than the experts, few of us pay any close attention to the vital figures of economy. We are more interested in our monthly income, travelling cost or price of food items. What we often ignore is that all these are depended on the economic health of the country.

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India is a growing economy. It is positioned to become the most vibrant economy of the world. However, it is suffering from one major problem – lack of investments. It is important to ensure you steer clear of common investment mistakes, which can easily be avoided.

The growth of new investments continues to fall, causing severe problem in economic.
Here is why revival in investment is absolutely mast in India:

Development of Infrastructure

The investment in infrastructure has been stagnant for some times now. Several infrastructure companies are debt laden and many of them have opted for restructuring. With better infrastructure, communication, business and life improve.

Employment Creation

Unless investment increases, infrastructure and business will not be able to revive. And if the businesses are not doing well, they will not be able to provide employment to the youth. This is a vicious cycle. Without proper employment, the potential of the youth is underutilised. Their life is hampered and as a result unrest in society keeps on increasing. Revival of investments however can create a ripple effect to increase overall balance of society.

Controlling Inflation

BWith increased investment, the free cash in the market comes down. In an increased investment scenario, the interest rates of fixed deposits also increase. As a result, common people tend to keep their money instead of using them. The free cash circulated in the market are absorbed by the financial institutes resulting less demand in market.
Following the basic rule of economics, as the demand in the market goes down so does the price of commodities. Remember what we thought the common people worry about? Yes, inflation goes down with increase of investment.

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Inclusive Economy

Investment does another important job. It creates a bridge between the market and the common people. There are many aspects how growth of investments provide inclusive economy. Consider this: with investment of infrastructure, the remote corners of the country become accessible. The job opportunity and disposable income also increase there. On the other hand financial institutes can reach to the previously untapped market with their offerings. The people over there get better return and security.
When we look at a bigger picture, we understand everything is connected. When we connect the dots, we find the economy needs to be fuelled for benefit of all the stakeholders. This is the one reason India needs revival of investment. As without investments, the growth becomes stagnant.

Also Read: Investment Types & Differences

DISCLAIMER: The mentioned fixed deposit interest rates are indicative only, and may be subject to change periodically. Please check the interest rates on our website.

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