Uptick in investments fueled by state govts' capex, not private sector

The Centre's capex recorded a contraction of 33% in November year-on-year

Investments, it seems, have revived in the economy. Evidence of this is that gross fixed capital formation is officially estimated to grow 12.2 per cent in 2018-19, the highest since Narendra Modi became prime minister.

Also, its share in gross domestic product (GDP) is set to rise by 29.5 per cent in the year, the secondhighest in this government, showed the advance estimates for 2018-19. However, deeper analysis shows that investments are not driven by the private sector, but governments, particularly states. 

CARE Ratings Chief Economist Madan Sabnavis said private sector investment had not picked up. Had it been investing