DefinePK

Abstract

The author here looks at problems in the manufacturing sector. One macro enigma is that while growth had recently risen to 8%, investment levels as a ratio of GDP seem to have fallen. One reason for this is the re-evaluation upwards of the GDP. But the same issue emerges in manufacturing with very high growth rates coinciding with falling investment levels. The declining investment levels could be due to a number of factors including high production costs, transaction costs, policy continuity risks, skills and wages and changes in the demand structure.