Investment,Savings, Fdi Ratios Stagnant

Gross domestic investment, savings and foreign direct investment as a ratio of gross domestic product (at current prices) were almost stagnant between 1987-88 and 1996-97, according to an analysis by the Federation of Indian Chambers of Commerce and Industry (Ficci).

The analysis showed that gross domestic investment hovered between 21 per cent and 27 per cent of GDP between 1987-88 and 1996-97.

During 1987-88, gross domestic investment was 22 per cent of the GDP which grew to 24 per cent in 1988-89. Gross national savings as a percentage of GDP during the corresponding years were 20 per cent and 21 per cent, respectively.

 

The highest foreign direct investment ratio was registered in 1995-96 at 27 per cent of GDP. The corresponding gross national saving ratio was 25 per cent and only 2 per cent was mobilised from the foreign savings route. This seems to be the best year for gross domestic investment during the period under review.

The worst year was 1993-94 when the gross domestic investment was only 21 per cent of GDP most of which came from gross national savings. Realisation from foreign savings was negligible that year.