They say Indian eco slowdown mainly because of investments which
is pretty much known: The slowdown in growth has been primarily
due to falling investment. Investment reached 38 percent of GDP
in 2007/08, just before the onset of the global financial
crisis, lifting growth to nearly 10 percent. But investment
growth subsequently dropped sharply, crossing into negative
territory for the last two quarters of 2011. This downturn is
unprecedented. With the exception of the September-December
quarter of 2008, one would have to go back to the last quarter
of 2001— more than a decade—to find a year in which investment
fell. Since quarterly national accounts have been compiled, no
consecutive declines in investment were recorded until 2011. The
weakness in investment has been mainly due to domestic factors,
such as high and volatile inflation, but not real interest
rates. However, macro variables alone cannot fully explain the
weakness in investment in recent quarters, suggesting that other
causes, such as structural