Pvt investments may drop below 11% of GDP in FY25

India's private sector investments had slipped to a three-year low in 2023-24 (FY24), and are expected to fall further in the current financial year (FY25), India Ratings said on Wednesday.

- SHIVA RAJORA

The investments in the private sector are likely to plummet to below 11 per cent of the GDP in FY25, based on the trends from the latest national accounts data and company filings, it noted.

In FY24, the private sector investments stood at 11.2 per cent of GDP, lower than the pre-Covid (FY16-FY20) average of 11.8 per cent.

The investment rate, measured in proportion of gross capital formation (GCF) to GDP, had languished at 29.9 per cent from FY16 to FY20.