The fixed investment (measured by Gross Fixed Capital Formation) by the private corporate sector increased from 11.7 per cent of the GDP at current market prices in 2013-14 to 12.3 per cent in 2014-15 (the latest year for which data is available), despite indications of constraints like stressed assets.

Investment depends on various factors that, interalia, include: expectations of demand viz-a-vis the available capacity, expected profit, business climate and interest rate.

The Government has taken a number of steps to improve the business climate and boost investment n the economy which, among other, include: the "Make in India" initiative along with the attendant facilitatory measures for a more conducive environment for investment; Start-up India initiative to boost entrepreneurship and creation of jobs; opening up of specified sectors for foreign direct investment; and investment-augmenting tax measures. The Reserve Bank of India reduced the policy repo rates by 125 basis points during 2015.
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