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22Dec 2025

Capital Formation Slowdown in India’s Growth

Capital Formation Slowdown Threatens India’s Growth Ambitions Why in the News? India is currently the world’s fastest-growing major economy, yet economists warn of a prolonged slowdown in capital formation. Despite strong GDP growth, private investment, household savings, and investment efficiency have weakened, raising concerns that inadequate productive capacity may obstruct India’s long-term economic and employment …

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