Q. Despite a significant rise in public investment( during five year plans), the GDP growth rate has continued to be rather slow. Comment.
Dear student
Public investment did not yield the positive result, although the public sector enterprises show the encouraging performance in the beginning but thereafter it started showing losses.several thousands crores of rupees was invested in the growth and development of the economy but all went ruin
.lots of restrictions on private enterprises to start up like license which discourage normal public to start new venture.hence, gdp rate remain low inspite of significant rise in public investment.
2) poor performance of public sector enterprises.public sector did not face the foreign competition .hence, their enthusiasm get finished to upgrade their product.only public nvestment was there but productive results was not observed in the public enterprises.
Hence, we can conclude that the public investment does not yield the rise in gdp.
Regards
Public investment did not yield the positive result, although the public sector enterprises show the encouraging performance in the beginning but thereafter it started showing losses.several thousands crores of rupees was invested in the growth and development of the economy but all went ruin
.lots of restrictions on private enterprises to start up like license which discourage normal public to start new venture.hence, gdp rate remain low inspite of significant rise in public investment.
2) poor performance of public sector enterprises.public sector did not face the foreign competition .hence, their enthusiasm get finished to upgrade their product.only public nvestment was there but productive results was not observed in the public enterprises.
Hence, we can conclude that the public investment does not yield the rise in gdp.
Regards